Principles for Responsible Lending
September 2013
Background
At the Westpac Group, we are committed to responsible lending practice. We acknowledge our
obligation to market our products responsibly in line with the expectations of customers and the
community. Our Principles for Doing Business form the foundation of our commitment to
corporate responsibility and sustainable business practice.
Purpose
The following Principles provide additional details of our approach to responsible lending.
Our Principles
Principle One
 We seek to lend only what our customers can afford to repay
We are therefore committed to:
Compliance with all local legislation including the National Consumer Credit Protection Act
and Code of Banking Practice in Australia and the Code of Banking Practice and the Credit
Contract and Consumer Finance Act in New Zealand, relevant guidelines published by the
Financial Ombudsman Service, our own credit assessment policies and Our Principles for
Doing Business.
Following a loan application assessment process, which may include the use of credit
scoring, credit reference agency checking and affordability verification to help assess a
customer’s capacity to repay.
Allocating credit approval authority based on skills and experience. We segregate key
responsibilities ensuring our people are trained and able to carry out their roles, and
ensuring the functional independence of credit approval from line sales and relationship
management.
Helping our customers stay informed, providing them with the information they need to be
confident when making financial decisions.
Principle Two
 We market our products and services responsibly
We are therefore committed to:
Acting with integrity, following ethical and legal selling practices and giving our customers
information that helps them make informed decisions about our products and services.
Making reasonable enquiries about customer requirements and objectives.
Assessing that any credit product we provide to a customer is not unsuitable for them.
Providing information to assist with our customers’ understanding of the risks or costs
associated with product features.
Offering credit card limit increases to existing customers only on the basis of strict eligibility
criteria, including but not limited to past repayment history and regulatory requirements.
Offering home loan top-up services to existing customers only on the basis of credit
eligibility criteria which may include the use of credit reference agencies and detailed
lending assessments with reasonable verification of the customer’s financial position.
Offering pre-approved business credit limits to existing customers only on the basis of strict
eligibility criteria, including but not limited to past repayment history.
Ensuring offers to increase credit limits comply with all applicable codes and regulations.
Offers to increase credit limits include an affordability statement, clarity on the new
minimum payment required and options to lower credit limits.
As a matter of policy, we avoid making direct offers of credit to customers with poor
repayment history, customers who have opted out from unsolicited contact and others
identified as potentially high risk.
Taking reasonable steps to review satisfactory repayment history for debt re-finance and
verify a customer’s financial situation, including but not limited to information disclosed by
the customer such as assets, liabilities, income and expenses.
Carefully and continually monitoring our credit assessment processes including submission
quality, appropriate use of credit approval authorities and satisfactory conduct of our
employees. This monitoring also includes an internal review function which independently
assesses the adequacy and effectiveness of the credit risk management function.
Principle Three
 We support customers facing financial difficulty
We are therefore committed to:
Encouraging customers facing financial difficulty to talk to us directly, treating every case
individually. This may include providing personal customers with access to local, fee-free
and independent financial counselling services where required.
Encouraging open discussion of issues and accepting responsibility for managing issues
that arise, including personal accountability for resolving issues that are brought to our
attention.
Providing specific relief to customers in difficulty due to natural disaster where appropriate
for example, deferred payments, loan restructuring, discounted refinancing and interest
penalty and fee waivers.
Finding solutions for customers experiencing financial difficulty that will, to the extent
possible, seek to ensure the customer’s business is sustainable and can be restored to
good health.
Offering deferred payment options (repayment holidays) where appropriate to help
customers deal with changing circumstances, such as illness or loss of employment.
Ensuring that where a customer has not met their repayment requirements all discussions
are respectful and consider the financial goals of the customer, and that we comply with all
relevant legal requirements.
Principle Four
 We help to improve our stakeholders’ financial literacy and capability
We are therefore committed to:
Providing public access to our money management, budgeting, saving, risk and spending
educational materials, including to schools, business and community groups.
Delivering a range of financial education programs to assist personal and business
customers as well as broader business skills programs for business customers through
many of our brands.
Ensuring the accessibility of our products and services to all, including people with
disabilities, those living in remote locations and those from non-English speaking
backgrounds.
Supporting improved financial literacy and access to finance in Australia, New Zealand and
the Pacific through local partnerships and secondment programs, including for indigenous
communities.
Scope
Unless otherwise stated these principles apply to all business and retail customers of the
Westpac Group and apply to all lending products.
Supporting policies and standards
This statement is designed in accordance with the National Codes and other relevant legislative
requirements. This statement is designed to work in conjunction with Westpac’s existing risk
policies, processes and procedures including the environmental, social and governance (‘ESG’)
risk management framework and Westpac’s Principles for Doing Business.