RBA’s Own Credit Card Regulations Prevent It From Issuing Cards

It’s rare these days that regulators are criticized for being over cautious however that is exactly the criticism being faced by the Reserve Bank of Australia who says that its own rules for access to the credit card system are so restrictive even the RBA itself is denied access.

Back in 2004 the central bank rescinded the right of MasterCard and Visa to decide who would be allowed to issue and receive their cards. The RBA argued that the system had to be open to any ”authorised deposit-taking institution” that is under the supervision of the Australian Prudential and Regulation Authority (APRA).

The problem the central bank has is not that it does not qualify since it provides banking services to the Federal Government and its agencies. However it is finding that it cannot issue Visa and MasterCards in the same way other financial institutions can. The central bank would love to be able to issue these cards because it would mean that ordinary individuals could pay ASIC feed or taxes simply by quoting their card number.

Australia World’s Happiest Nation

Whilst consumer sentiment may be low, Australia continues to be ranked the happiest nation in the world amongst developed economies for the third consecutive year.

The Better Life Index is compiled by the Organisation for Economic Cooperation and Development (OECD) which cited continued strength in the overall economy as the reason.

Australian Consumer Confidence Slumps

Consumer confidence in Australia fell to its lowest level in over 17 months in response to both record low interest rates and a budget deficit according to the results of a survey..

The Westpac Melbourne Institute sentiment index in May fell 7 per cent during May, its largest decline since December 2011 and the first time the index level which is currently 97.6 breached the all important 100 mark which suggests that there are more pessimists than optimists.