Colonial Mutual Direct Debit: Fill & Download for Free

I'm going to answer this question as objectively as I can without reference to politics. In the 19th century, France, like other European countries, acquired colonies in Africa that then adopted its language, currency and many features of its culture. France retained its African colonies well into the 20th century; not until the 1960s did they start to achieve independence. At the time of World War II, therefore, France’s African colonies were using the French franc. In the aftermath of World War II, the United States and Europe adopted a new currency exchange rate system known as the ‘Brenton Woods System, ’ named after the place where the agreement was reached. European countries agreed to link their currencies to the US dollar, which itself was at that time convertible to gold. This agreement established the US dollar as the premier reserve currency of the world, a status that it retains today.France’s economy was badly damaged in World War II. To help support its recovery, the French franc was substantially devalued before being fixed to the US dollar under the Bretton Woods system. however, this would have imposed an even large devaluation of currency on France’s African colonies. As part of the Bretton Woods agreement, therefore, a new currency was created for those colonies called the ‘Colonies Françaises d’Afrique franc, ’ or CFA franc. Since the colonies have become independent states, the meaning of CFA has changed, and today it stands for ‘Communauté Financière Africaine’ in West Africa and ‘Coopération Financière en Afrique Centrale’ in the Central African States. The CFA franc is the official currency of two economic communities, the ‘Communauté Economique et Monétaire de l’Afrique Centrale’ or CEMAC, and the ‘West African Economic and Monetary Union’ or WAEMU. It is also the official currency of the island nation of Comoros, though there it is known as the Comorian franc. Currently, CEMAC consists of the following countries: Chad, Cameroon, the Central African Republic, Democratic Republic of the Congo, Equatorial Guinea and Gabon. WAEMU comprises Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. Most of these countries are former French colonies.CEMAC and WAEMU each have their own version of the CFA franc, together with a central bank to issue it. Currently, the two versions of the currency are not interchangeable, though the two central banks say they are working toward complete integration of payments systems so that the two versions of the CFA franc can circulate freely in all countries, effectively creating one single currency. Both versions of the CFA franc are hard-pegged to the Euro. When the CFA franc was first created, it was pegged to the French franc at 50 CFA francs to 1 French franc. It was devalued in 1994 and then remained at 100 to 1 until France adopted the Euro in 1999. At that point, the French franc was converted to the Euro at 6.55957 to 1. The CFA franc’s currency exchange rate thus became 655.957 to 1 euro, where it remains pegged to this day.Although the two versions of the CFA franc are not yet integrated, they are both worth exactly the same in Euro terms, and the hard peg to the Euro means that their external value is also identical, since their foreign exchange rates float up and down with the euro. So for nearly all intents and purposes, the 14 countries in the CFA franc currency union use the same currency, and that currency can be regarded as a version of the Euro.To ensure that the CFA franc is not forced to devalue through speculative attacks, its convertibility to the Euro at the fixed exchange rate is guaranteed by the French government and backed with Euro reserves. Since 2010, under the agreement with the French government, 50 percent of those reserves have been held by the French Ministry of Finance. Holding the peg to the Euro also forces the two CFA franc central banks to follow the monetary policy of the European Central Bank, which effectively sets interest rates for the CFA franc zone.CFA zone countries enjoy low inflation, low interest rates relative to those in other parts of Africa, and strong trade links with France. Businesses benefit from the stability of the CFA franc and the credibility of its currency exchange rate peg to the Euro. The uncertain future relationship of the CFA franc with the Eurozone may give some observers cause for concern. However, governments in the CFA franc zone are working to improve the area’s economic infrastructure to develop stronger trade links with each other and with trade partners around the world. However, it must be noted that these benefits appear to come at a cost to African nations. According to the French government, four major principles govern each of the CFA Zones:• The CFA franc is pegged to the Euro (the exchange rate has not changed since 1994 – €1 = FCFA 655.957).• France provides an unlimited guarantee for the convertibility of the CFA franc into Emuros. Like all other currencies, the CFA franc is freely convertible to gold or another foreign currency. France has committed to meeting any conversion requests. For example, if a State in the Franc Zone cannot pay its imports in foreign currency, France will pay the corresponding amount in Euros.• In return, foreign exchange reserves are pooled by the different economic regions and deposited with the French Treasury (between 50% and 65% depending on the region).• Current account transactions and capital flows are free in each region.A stable exchange rate means that inflation is lower in the Franc Zone than in the rest of sub-Saharan Africa, which helps maintain the purchasing power of populations. In recent years, inflation has been less than 3% in the Franc Zone, compared to an average of 9% in sub-Saharan African. Because the franc is pegged to the Euro, investors in the Euro area and other countries are more likely to invest in the Franc Zone, since they are protected against exchange rate risks.The Franc Zone supports the development of shared economic policies in each economic area through the pooling of foreign exchange reserves. In this way, it helps create bigger markets and encourage budgetary discipline, especially through common criteria that member countries agree to respect. Although the system has its origins in the monetary cooperation implemented during colonization, it has evolved considerably since then at the instigation of all stakeholders. The system is essentially African, and preserves the balance and sovereignty of Franc Zone States. France does not take part in developing or implementing shared policies. France’s representation on central bank authorities has decreased in recent decades. France is not represented at UEMOA or CEMAC, during conferences of Heads of State or Government, or during ministerial council or committee meetings, which are the Franc Zone’s main governance bodies.Monetary sovereignty has been transferred from States to African regional central banks. Franc Zone member countries sit on these banks. The central banks decide how much currency should be in circulation while respecting price and monetary stability goals. Heads of State and Government for Franc Zone member countries may also decide to change the exchange rate with the euro. This has happened once, in 1994. Each country is free to leave the Franc Zone, either temporarily (like Mali) or permanently (like Guinea, Mauritania and Madagascar). It was African countries’ sovereign decision to create, join or remain in the Franc Zone. The participation of member countries depends on bilateral agreements and, since 1962, cooperation agreements with regional monetary unions.The CFA franc has been printed in Chamalières by the Banque de France since the currency was created in 1945. The printing process is centralized to minimize manufacturing and transport costs. Franc Zone Heads of State and Government may decide by mutual agreement to change the place of printing. Many other African currencies are printed in third countries, because not all nations have the appropriate printing facilities. For instance, the Guinean franc, the Ethiopian birr, the Ugandan shilling and the Botswanan pula are printed in England; the Mauritanian ouguiya, the Eritrean nakfa, the Tanzanian shilling and the Zambian kwacha are printed in Germany; and the Liberian dollar is printed in the United States. Similarly, the euro is not printed in all 19 countries in the euro area. Notes are printed by 11 presses throughout the European Union. There is a difference between printing a currency and deciding how many notes and coins should be in circulation. African central banks make these decisions for the CFA franc. The term “Franc Zone” first appeared at the end of the 1930s, before World War II. Franc Zone Heads of State and Government may decide to change the currency’s name at any time.According to the French government, France does not use the African currency reserves deposited with the French Treasury to finance its external debt. And these deposits do not penalize the economies of African countries. Every year, France pays millions of Euros in interest on deposits to African countries. France’s role in investment and trade is often less important in the Franc Zone. In the UEMOA area, France accounted for 14% of imports and 6% of exports in 2016. In the CEMAC area, it accounted for 14% of imports and 3% of exports. By ensuring the CFA franc’s unlimited convertibility into euros (even when the Euro drops in value), France is shouldering an important financial responsibility.A fixed exchange rate does not equate to a loss of monetary sovereignty. Thirty-three countries in sub-Saharan Africa (and many others around the world) have opted for fixed or semi-fixed exchange rates, because this protects them from external economic shocks and international fluctuations. For example, Lesotho, Namibia and Swaziland have all pegged their currencies to the South African rand (ZAR) as part of the Common Monetary Area (CMA). Elsewhere in Africa, Eritrea and Djibouti peg their currencies to the United States dollar (USD).The fixed exchange rate means that price rises are limited, which helps guarantee the purchasing power of populations. By controlling inflation, Franc Zone central banks can keep their interest rates much lower (between 2 and 3%) than those offered by central banks in most neighboring countries (often over 10%). This supports loans for businesses and individuals.Economies in the Franc Zone are no less competitive than those in other sub-Saharan African countries, as seen in the 2016-2017 rankings in the Global Competitiveness Report, published by the WORLD ECONOMIC FORUM. Furthermore, the CFA franc protects member countries from international fluctuation and prevent political or economic crises from becoming monetary or financial crises. Member countries have moderate inflation levels, which protects the purchasing power of populations. In addition, several factors – the common currency, the pooling of foreign currency reserves, larger consumer markets and greater attractiveness for investors and foreign donors – support regional integration and growth.Lastly, the monetary stability offered by the Franc Zone encourages foreign investment, including by the Agence Francaise de Developpement or AFD, with a view to strengthening the economic, social, human and sustainable development of member countries. In this way, France helps finance infrastructure, urban development, the fight against climate change, water and sanitation, education and health. The beneficiaries of these projects are the African people. Countries in the Franc Zone retain control of their wealth. Sums deposited in France are unrelated to GDP or French debt.But is the CFA a wonderful as the French government claims. In an article posted to the newspaper, The aeast African, Luigi Di Maio, Italian Deputy Prime Minister and leader of the populist Five Star Movement, has blamed France for impoverishing Africa and encouraging migration to Europe. See the link below for details: Is CFA franc keeping African countries poor?Finally, I'll end with this this analysis of the relationship. I'm not an economist but I do know that nothing of value is offered for free, and France must benefit from the present arrangement or they'd end it. It's obvious that, French geopolitics in Africa is interested in natural resources. Initially, the franc zone was set as a colonial monetary sytstem by issuing currency in the colonies because France wanted to avoid transporting cash. After these countries gained their independence, the monetary system continued its operation and went on to include two other countries that were not former French colonies. At present, the CFA franc zones are made up of 14 countries. The fact that even today the currency of these regions is pegged to the euro (formerly French franc) and that reserves are deposited in France shows the subtle neocolonialism France has been pursuing unchecked. It is a currency union where France is the center and has veto power. This is supported by African governing elites who rely on the economic, political, technical, and sometimes military support provided by France. It is no wonder then that these former colonies are not growing to their full potential because they have exchanged development through sovereignty for dependency on France. This article investigates the set up of the CFA franc zones, its ties to French neocolonialism and its ability to further breed dependency in the former colonies of West and Central Africa.The CFA Franc ZonesThe first franc zone was set up in 1939 as a monetary region with a the French franc as its main currency. In 1945, the Franc des Colonies Francaises d’Afrique (CFA franc) and the Franc des Colonies Francaises du Pacifique (CFP franc) were created. After independence, Morocco, Tunisia, Algeria, and Guinea left. The Central African Economic and Monetary Union (CEMAC) and the West African Economic and Monetary Community (WAEMU) are known as the two CFA franc zones. WAEMU has eight members: Benin, Burkina Faso, Cote D’Ivoire, Guinea-Bissau (a former Portuguese colony joined in 1997), Mali, Niger, Senegal, and Togo. Their common currency is the “franc de la Communaute Financiere de l”Afrique (CFA franc), which is issued by the Central Bank of the West African States (BCEAO) located in Dakar, Senegal. CEMAC has six members: Cameroon, the Central African Republic, Chad, the Republic of Congo, Equatorial Guinea (a former Spanish colony joined in 1985) and Gabon. Their common currency is “franc de la Cooperation Financiere Africaine”, which is issued by the Bank of the Central African States (BEAC) located in Yaounde, Cameroon. It is worth mentioning that the BCEAO and the BEAC were HQed in Parius until the late 1970s.Since 1948, the two CFA francs were pegged at the rate of 50 CFA francs per French franc. In 1994, the CFA francs went through devaluation, 50 percent to be exact. At present, the arrangement of France to the two unions are a fixed peg to the Euro, a convertibility guarantee by the French Treasury and lastly, a set of legal, institutional and policy requirements. The CFA franc zone links three currencies: the two unions and the euro. The CFA franc is fixed at 66655.957 per Euro. WAEMU and CEMAC each have their own central banks that are independent of each other. The CFA francs can be converted to the euro, but cannot directly be converted into each other. The money is sent to France as an operations account in the French Treasury by the two central banks. Furthermore, “at least 20 percent of sight liabilities of each central bank must be covered by foreign exchange reserves, at least 50 percent of foreign exchange reserves must be held in the operations account and increasing interest rate oenalties apply if there is an overdraft. France is also represented on the board of both institutions.” In “Colonial Hangover: The Case of the CFA”, Pierre Canac and Rogelio Garcia-Contreras explain,“The functioning of the Operations Accounts is critical to maintaining the convertibility of the CFA francs at the official exchange rate while, at the same time, allowing the regional central banks to maintain some monetary autonomy. The Operations Accounts are credited with the foreign reserves of the BCEAO and the BEAC, but can be negative when the balance of payments of the CFA zone members is unfavorable. When this is the case, the French treasury lends foreign reserves to the two central banks. This special relationship with the French treasury allows the two African central banks to maintain the fixity of the exchange rate while allowing them to have some limited control over their monetary policy. The amount of borrowing allowed is unlimited although subject to several constraints in order to limit the size of the debt. First, the central banks receive interest on their credit in the Operations Account, while they must pay a progressively increasing interest rate on their debit in the account. Second, foreign reserves other than French francs or euros may have to be surrendered – a practice called ‘ratissage’, or additional reserves may have to be borrowed from the IMF. Third, the French treasury appoints members to the boards of the BCEAO and BEAC in order to influence their respective monetary policies and to ensure their consistency with the fixed parity. The autonomy of both African central banks is curbed by the French authorities, thereby prolonging the colonial relationship between France and its former colonies.”Apparently, representatives from France fill important positions in the Presidency, Ministry of Defense, Central Bank, Treasury, Accounting and Budget Departments, and Ministry of Finance, which allows them to have oversight and influence policy decisions. One French scholar observed that ministries from Francophone African states make around 2,000 visits to Paris in an average year. Adom shows the money kept at the French treasury earns no or very low interest for the franc zone nations. In 2007, the former Senegalese President, Abdoulaye Wade had stated that the funds can be used to boost investment, economic growth and alleviate poverty in the member countries instead of sitting in France.After the 1994 devaluation, the two CFA francs were pegged at the new rate of 100 CFA francs per French franc. The reason for the devaluation was accounted to loss of competitiveness as the French franc appreciated against the currency of major trading partners. These zones competitiveness was in the French market, but not to world markets. In the 1980s, there was a fall in the price of raw materials and a depreciation of the dollar. As a result, the growth and export of these nations were impacted. The governments of these zones were facing budget deficits, which they financed by borrowing from abroad until the IMF refused to lend them any more money in 1993. As for trade between the unions, it is low due to an external tariff. Capital flows between these unions is highly restricted. The hope that a monetary union would increase trade among the CFA franc zones never materialized.Kwame Nkrumah stated, “…imperialism… claims, that it is “giving” independence to its former subjects, to be followed by “aid” for their development. Under cover of such phrases, however, it devises innumerable ways to accomplish objectives formerly achieved by naked colonialism. It is this sum total of these modern attempts to perpetuate colonialism while at the same time talking about “freedom”, which has come to be known as neo-colonialism.”In “Government accounting reform in an ex-French African colony: The political economy of neocolonialism”, P.J.C. Lassou and T. Hopper state, “colonialism does not cease with the declaration of political independence or the lowering of the last European flag. Decolonization is a formal facade if former colonies cannot acquire the socio-economic base and political institutions to manage themselves as sovereign independent countries. The modern manifestation of colonial and imperialist traits is commonly labeled neocolonialism, which is sometimes linked to ‘dependency’. Neo colonialism occurs when the former colonial power still controls the political and economic institutions of former colonies.”France is carrying out neocolonialism by disguising this arrangement as a monetary union. These nations gave up their sovereign right to France. Neocolonialism is an impediment to development within African nations. France’s intervention was carried out through economic, political and militaristic ways. The ‘Accords deCooperation’ was signed by African leaders who gained power with France’s help at independence. On the other hand, the ‘Accords speciaux de defence’ provided France power to intervene militarily to protect African leaders who protected France’s interests. Lastly, the economic accords require former colonies to export their raw materials such as oil, uranium, phosphate, cocoa, coffee, rubber, cotton … etc to France while importing industrial goods and services primary from France. Furthermore, these nations reduce or ban their raw material exports when French defense interest require.Lassou and Hopper stress that accounting is a neglected part of development policies, especially in Francophone Africa. They share that “market-based reforms when applied in the South generally and Africa specifically…promote neocolonialism, enabling former colonial powers to retain control over political and economic institutions of former colonies to the advantage of multi-national corporations and trade whereby ‘Southern’ countries export cheap raw materials to ‘Northern’ countries and import high value-added goods and services in return.”According to the Human Development Index, out of 187 countries, the last three and seven of the worst ten countries are from Frencophone Africa. France’s neocolonialism approach is extremely subtle and paternalistic. The former French President, Jacques Chirac, said, “ We forget one thing: that is, a large part of the money that is in our [I.e., the French’s] wallet comes precisely from the exploitation of Africa [mostly Francophone Africa] over centuries.” In 2008, he went on to say, “without Africa France would slide down into the rank of a [third] world power.”Africa, Asia, and Latin America have pursued sustainable development since gaining independence. However, a few countries succeeded in actually developing their economies. In the 1950s, Raul Prebisch and other economist came up with the dependency theory, which explains why “economic growth in the advanced industrialized countries did not necessarily lead to growth in poorer countries.” Prebisch suggested that poor countries (periphery nations) exported raw materials to the developed countries (center nations) and imported finished goods. Moreover, there is a dynamic relationship between dominant and dependent states. Andre Gunder Frank claimed that the capitalist world system was divided into two concentric spheres: center and periphery. The advanced center countries need cheap raw materials from the underdeveloped periphery as well as a market to send their finished products.It has been decades since African countries gained independence. However, this independence was replaced by a dominance-dependence relationship known as post-colonialism. A ddominence-dependence occurs “when one country is able to participate in a definitive or determining way in the decision-making process of another country while the second country is unable to have the same participation in the decision-making of the first country.” Furthermore, the foreign and domestic policies of the independent African nations continue to be influenced by outside powers, especially their former colonizers. The post-colonial relationship when it came to former French colonies is the dominant role held by France.French colonialism was one of state colonialism. It was one of direct rule where native chiefs assisted French administrators, which led to the rise of local elites who were educated in the French system. The former colonies were indoctrinated with French culture, language, and law. In the time of independence, sub-Saharan colonies decolonized in a non-violent way while former British colonies gained their independence through war, a violent way that loosened the relationship towards Great Britain. Because freedom from France was carried out through non-violence, it came naturally for local elites to take power and continue their strong ties with France.Through the CFA franc zone, France is able to control the money supply, monetary and financial regulations, banking activities, credit allocation, and budgetary and economic policies of these nations. In addition, it breeds corruption and illegal diversion of public aid between France and its former colonies. For instance, conditional French public aid has forced these African states to spend the ‘aid' money on French equipment, goods or contracts with French firms, especially construction and public work firms.S.K.B. Asante points out that regional integration approaches do not remove the neocolonialism and dependency the African continent faces. He states, “none of the regional schemes have adequate provisions for attacking the all-embracing issue of dependency reduction nor have the efforts made towards this objective had any significant impact…the problem of dependency poses difficulties for African countries attempting a strategy of regional integration. Dependency serves as an obstacle to de-development it not only limits the beneficial effects of integration in both national and regional economy.”France is the main trading partner of the CFA franc zones. CFA franc zones, unlike other African nations, have avoided high inflations due to France. The two zones between 1989 and 1999 had 33 percent of imports and 40 percent of Foreign Direct Investment from France. These regions are highly dependent on France. Despite their ties to France, these CFA franc zones remain extremely poor. The two regions had a population of 132 million in 2008 where 70 percent are in WAEMU and 30 percent are in CAEMC. Their total GDP is equal to 4 percent of the French GDP. These regions are “producers and exporters of raw materials, including oil, minerals, wood and agricultural commodities, and agricultural commodities, they are highly sensitive to world price fluctuations and the trade policies of their trading partners, mainly the EU and the US. Their industrial sectors are rather underdeveloped.” Non-oil producing nations within the CFA franc zones have very low GDP per capita.According to Assande Des’ Adom, even after the currency was devalued, the CFA franc zones still suffer from currency misalignments. Adom points out, “the current monetary arrangements between the former colonies and France were designed based essentially on the economic interest of the latter. A prominent Ivorian economist goes even further to explain how franc zone’s member countries indirectly finance the French economy through these peculiar monetary arrangements.”The CFA franc zone is challenged by globalization, volatile oil and raw material prices in addition to regional security problems. It can be argued that the “dependency and neocolonial practices surrounding the relationship between France and former colonial possessions in Africa is the inability of CFA countries to build up monetary reserves.” In today’s world, control of a country is carried out through economic and monetary ways. Nkrumah had warned“The neocolonial state may be obliged to take the manufactured products of the imperialist power to the exclusion of competing products elsewhere. Control over government policy in the neo-colonial state may be secured by payment towards the cost of running the State, by the provision of civil servants in positions where they can dictate policy, and by monetary control over foreign exchange through the imposition of a banking system controlled by the imperial power.”In conclusion, the CFA franc zones continue to be dominated by the political will, economic interest, and geopolitical strategy pursued by the French republic. It seems some elite leaders do not wean away from France's influence. President Omar Bongo of Gabor said, “France without Gabon is like a car without petrol, Gabon without France is analogous to a car without a driver.” The previous quote can be applied to almost all of the franc zone nations. The set up of the currency unions benefits France more than its members. French colonialism is preventing the development of these nations and causing them to be dependent.

Banking in Australia is dominated by four major banks: Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank. There are several smaller banks with a presence throughout the country, and a large number of other financial institutions, such as credit unions, building societies and mutual banks, which provide limited banking-type services and are described as authorised deposit-taking Institutions. Many large foreign banks have a presence, but few have a retail banking presence. The central bank is the Reserve Bank of Australia (RBA). Since 2008 the Australian government has guaranteed deposits up to $250,000 per customer per institution against banking failure.[1]Banks require a bank licence under the Banking Act 1959. Foreign banks require a licence to operate through a branch in Australia, and Australian-incorporated foreign bank subsidiaries. Complying Religious Charitable Development Funds (RCDFs) are exempt from the licence requirement.[2]Australia has a sophisticated, competitive and profitable financial sector and a strong regulatory system.[3]For the 10 years ended mid-2013, the Commonwealth Bank was ranked first in Bloomberg Riskless Return Ranking a risk-adjusted 18%. Westpac Bank was in fourth place with 11% and ANZ Bank was in seventh place with 8.7%.[4]The four major banks are among the world's largest banks by market capitalisation and all rank in the top 25 globally for safest banks. They are also some of the most profitable in the world.[3]Australia's financial services sector is the largest contributor to the national economy, contributing around $140 billion to GDP a year. It is a major driver of economic growth and employs 450,000 people.[3]Contents1 Financial institutions 1.1 Big four banks 1.2 Mutual banking in Australia 1.3 Other retail banks 1.4 Foreign banks2 Regulation3 Interbank lending market4 International cooperation5 History 5.1 Early history 5.2 After federation 5.3 Adoption of new technology 5.4 Deregulation and concentration6 See also7 References8 External linksFinancial institutionsDeregulation of the financial sector commenced in the mid-1960s, with the removal of the distinction between and separation of trading and savings banks. Building societies were allowed to take deposits from the public. Banking in Australia is notable by the small number of large banks in the market. Much of this concentration is the result of bank acquisitions. English, Scottish and Australian Bank was acquired by the ANZ Bank in 1970. In 1982, Bank of New South Wales merged with the Commercial Bank of Australia to form Westpac. There were many other bank mergers and acquisitions throughout Australia's banking history. Beginning in the 1980s, several building societies sought to convert to banks, but were required to demutualise before they were permitted to do so. This included NSW Building Society, which became Advance Bank, St.George, Suncorp, Metway Bank, Challenge Bank, Bank of Melbourne and Bendigo Bank. A change in regulations allowed building societies and credit unions to become banks without having to demutualise, and several including Heritage Bank have converted since 2011 while retaining their status and structure as mutual organisations.In 1990, the government, under political pressure, adopted a strategy to halt the further concentration in the banking industry, which came to be called the "four pillars policy".[5]Big four banksMain article: Four pillars policyIn 1990, the government adopted a "four pillars policy" in relation to banking in Australia and announced that it would reject any mergers between the big four banks.[5]This is long-standing policy rather than formal regulation, but it reflects the broad political unpopularity of further bank mergers. A number of commentators have argued that the "four pillars policy" is built upon economic fallacies and works against the Australia's better interests.[6]The four pillars policy does not prevent the four major banks from acquiring smaller competitors. In 2000, CBA acquired the Colonial group, which had emerged as a major bank–insurance combine in the 1990s, after the Colonial Mutual insurance group took over State Bank of NSW in 1994. The Commonwealth Bank also acquired the State Bank of Victoria in 1990 and BankWest in 2008. Westpac acquired the Challenge Bank in 1995, Bank of Melbourne in 1997, and St.George Bank in 2008.[7]Currently, banking in Australia is dominated by four major banks: Commonwealth Bank, Westpac, ANZ Bank, and the National Australia Bank. The top four banking groups in Australia ranked by market capitalisation at share price 1 December 2017:RankCompanyMarket capitalisation(2017)Cash earnings(2015)Total assets(2016)1Commonwealth Bank of Australia (CBA)A$139.219 billion[8]A$9.14 billion[9]A$933.078 billion[10]2Westpac Banking Corporation (Westpac)A$106.821 billion[8]A$7.82 billion[11]A$839.202 billion[10]3Australia and New Zealand Banking Group (ANZ)A$83.599 billion[8]A$7.22 billion[12]A$914.900 billion[10]4National Australia Bank (NAB)A$79.465 billion[8]A$5.84 billion[13]A$777.622 billion[10]Mutual banking in AustraliaThe Customer Owned Banking Association (formerly known as Abacus Australian Mutuals) is the industry body representing the more than 100 credit unions, building societies and mutual banks that constitute the Australian mutual or cooperative banking sector.[14]Collectively, Australian customer-owned banks service 4.6 million customers or 'members' (as they are mutual shareholders in the institutions), with total assets of over A$85 billion.[15]The ten largest customer-owned banks in Australia are:[16]RankInstitutionTotal assets1CUAA$10.0 billion2Heritage BankA$8.5 billion3Newcastle PermanentA$7.5 billion4People's Choice Credit UnionA$6.1 billion5IMB BankA$4.9 billion6Greater BankA$4.8 billion7Beyond Bank AustraliaA$4.12 billion8Teachers Mutual BankA$4.08[17]billion9P&N BankA$2.9 billion10Bank AustraliaA$2.8 billionHeritage Bank is Australia's largest customer-owned bank, having changed its name from Heritage Building Society in December 2011. A number of credit unions and building societies changed their business names to include the word 'bank', to overcome adverse perceptions of smaller deposit-taking entities. For example, in September 2011 Bank Australia (formerly bankmecu) was announced as Australia's first customer-owned bank.[18]Three teachers' credit unions have become known as 'banks'; namely, RACQ Bank (formerly the Queensland Teachers' Credit Union), Victoria Teachers Mutual Bank (formerly the Victoria Teachers' Credit Union), and Teachers Mutual Bank (formerly Teachers Credit Union Limited).[19]The Police & Nurses' Credit Union began trading as P&N Bank in March 2013, and some credit unions are electing to use 'mutual banking' as a business tagline, rather than as a business name, as they do not meet the criteria to be called a 'bank'.[20]Other retail banksThere are other retail banks in Australia. These are smaller and often regional banks, including the Bendigo and Adelaide Bank, Suncorp-Metway, the Bank of Queensland and ME Bank. Other banks, such as Bankwest, St George Bank and Bank of Melbourne, are subsidiaries or alternate trading names of the big four banks.Foreign banksForeign banks wishing to carry on a banking business in Australia must obtain a banking authority issued by APRA under the Banking Act, either to operate as a wholesale bank through an Australian branch or to conduct business through an Australian-incorporated subsidiary. Foreign banks engaging in retail banking require a full banking licence. Foreign banks which do not wish to obtain a banking authority in Australia may operate a representative office in Australia for liaison purposes, but the activities of that office will be restricted.According to the Foreign Investment Review Board, foreign investment in the Australian banking sector needs to be consistent with the Banking Act, the Financial Sector (Shareholdings) Act 1998 and banking policy, including prudential requirements. Any proposed foreign takeover or acquisition of an Australian bank will be considered on a case-by-case basis and judged on its merits.There are a number of foreign subsidiary banks, however only a few have a retail banking presence; ING Bank (Australia) Limited (trading as ING), HSBC Bank Australia (a subsidiary of HSBC), Delphi Bank (formerly the ‘Bank of Cyprus Australia’, and in 2012 acquired by Bendigo and Adelaide Bank), Bank of Sydney (with a full banking licence since 2001) and Citibank Australia (a subsidiary of Citigroup) have a small number of branches.Foreign banks have a more significant presence in the Australian merchant banking sector.RegulationSee also: Financial regulation in AustraliaFormally, there is extensive and detailed regulation of Australia's banking system, split mainly between the Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC). The Reserve Bank of Australia also has an important involvement. However, in practice, banks in Australia are self-regulated through External Dispute Resolution (EDR) schemes, the most prominent of which is the Financial Ombudsman Service (Australia) (FOS).APRA is responsible for the licensing and prudential supervision of Authorised Deposit-Taking Institutions (ADIs) (banks, building societies, credit unions, friendly societies and participants in certain credit card schemes and certain purchaser payment facilities), as well as life and general insurance companies and superannuation funds. APRA issues capital adequacy guidelines for banks which are consistent with the Basel II guidelines. All financial institutions regulated by APRA are required to report on a periodic basis to APRA. Certain financial intermediaries, such as investment banks (which do not otherwise operate as ADIs) are neither licensed nor regulated under the Banking Act and are not subject to the prudential supervision of APRA. They may be required to obtain licences under the Corporations Act 2001 or other Commonwealth or State legislation, depending on the nature of their business activities in Australia.ASIC has responsibility for market integrity and consumer protection and the regulation of certain financial institutions (including investment banks and finance companies). However, ASIC does not actually investigate any issues or propose any regulations that concern consumer protection, this authority is delegated to the EDR schemes and the Australian Competition and Consumer Commission (ACCC). The front face of the regulation of financial institutions and financial advisers are the various EDR schemes, the most popular of which is the FOS. ASIC is responsible for the approval of EDR schemes, all of which must comply with ASIC Regulatory Guide 139.[21]Banks are also subject to obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 as "reporting entities". They are required to identify and monitor customers using a risk-based approach, develop and maintain a compliance program, and report to Australian Transaction Reports and Analysis Centre (AUSTRAC) certain cash transactions as well as suspicious matters and file annual compliance reports.There have been calls in recent times for an added level of regulation of banks following lending, foreign exchange, and financial planning controversies between 2009 and 2017, highlighted in 2016 Senate inquiries.[22][23]Referring to white collar crime, ASIC's Chairman Greg Medcraft said 'This is a bit of paradise, Australia, for white collar [crime]'.[24]In December 2017 the Australian Government established the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to inquire into and report on misconduct in the banking, superannuation and financial services industry.[25][26]The interim report from the Royal Commission prompted the industry to revamp its banking code. The code has been criticised as needing to be legally binding, strictly liable and breaches criminal.[27]Interbank lending marketDuring the course of every day, each bank executes a large number of transactions, such as payroll, retail and business purchases, credit card payments, etc. Some involve cash (or its equivalent) coming into the bank and others of cash going out. Banks do not have a reliable way of predicting what or how much those transactions will be. At the end of each day banks must reconcile their positions. The bank that finds itself with a surplus of cash would miss out earning interest on the cash, even if it's for only one night. Other banks may find that they had more money going out than coming in, and the bank must borrow cash to cover the shortfall. To meet its liquidity obligations, the bank with the shortfall would borrow from a bank with a surplus in the interbank lending market. Depending on the bank's assessment of the type of shortfall and costs, the bank may take out an overnight loan, the interest rate of which is based on the cash rate, which is set by the Reserve Bank (RBA) every month (currently 1.25%); or else take out a "short duration loan", known as "prime bank paper", for a term of between one and six months and whose interest rate is called the "bank bill swap rate" (BBSW), which is set by the commercial banks.A body called the Australian Financial Markets Association (AFMA) determines the BBSW rate. Until 2013, AFMA would every morning at 10am ask each of the ‘prime banks’ what interest rates they will be offering or asking for that day. AFMA would then calculate the BBSW rate as the average of those quotes. Normally, the longer the term, the higher the offered rate. The system required some level of subjective judgement by the banks, because they would not know at that time of day what their end-of-day position would be. In addition, the system was open to abuse if banks lied to the AFMA, opening the BBSW rate to manipulation to some bank's advantage.[28]To avoid a repeat of alleged manipulations, AFMA changed the method of calculating the BBSW rate to the use of actual market transactions, which, however, is still open to possible manipulation. Besides effecting the BBSW rate, many other financial rates are based on it.[29]The Australian Securities and Investments Commission (ASIC) monitors the BBSW system and prosecutes those that manipulate the system.[29]There arises from time to time a situation when there are insufficient funds in the interbank lending market to enable the banks to balance their books. Some banks, for example, may be experiencing a bank run or may be withholding funds from the market expecting a heightened demand in the near future. The Reserve Bank's role includes ensuring liquidity in the banking system, including acting as lender of last resort in times of a liquidity crisis.[30]International cooperationThe United States has enacted the Foreign Account Tax Compliance Act. (FATCA) which came into effect on 1 July 2014, which aims to prevent tax evasion by US tax residents who hold foreign accounts by requiring foreign financial institutions to report details and interest income to the US Internal Revenue Service (IRS). Australia has signed an Intergovernmental Agreement (IGA) with the United States which sets out rules to enable Australian financial institutions to report to the Australian Taxation Office (ATO) which in turn passes the information to the IRS. FATCA affects US citizens, US tax residents and certain types of organisations that are controlled by them. To comply with FATCA, Australian banks ask customers to declare their US tax status.[31]HistoryEarly historyBetween white settlement in Sydney in 1788 and 1817, there were no banks nor much currency in the colony. The first bank in Australia was the Bank of New South Wales, established in Sydney in 1817.[32]During the 19th and early 20th century, the Bank of New South Wales opened branches throughout Australia and Oceania: at Moreton Bay (Brisbane) (in 1850), then in Victoria (1851), New Zealand (1861), South Australia (1877), Western Australia (1883), Fiji (1901), Papua (now part of Papua New Guinea) (1910) and Tasmania (1910). It was by far the most dominant bank throughout Australia until into the 1960s. The Commercial Banking Company of Sydney was established in 1834, and the National Bank of Australasia establish in 1858, and set up branches in other Australian colonies: Tasmania (in 1859), Western Australia (1866), New South Wales (1885) and Queensland (1920), and a London branch (1864). After acquiring a number of other banks over the years, these two banks merged in 1982 to form the National Commercial Banking Corporation of Australia, which was renamed the National Australia Bank.Union Bank of Australia, Sydney, 1840sIn 1835 a London-based bank called the Bank of Australasia was formed[33]that would eventually become the ANZ Bank. In 1951, it merged with the Union Bank of Australia, another London-based bank, which had been formed in 1837. In 1970, it merged with the English, Scottish and Australian Bank Limited, another London-based bank, formed in 1852, in what was then the largest merger in Australian banking history, to form the Australia and New Zealand Banking Group Limited.A speculative boom in the Australian property market in the 1880s led to the Australian banking crisis of 1893. This was in an environment where little government control or regulation of banks had been established and led to the failure of 11 commercial banks, even the National Bank of Australasia.Until 1910, banks could issue private bank notes, except in Queensland which issued treasury notes (1866–1869) and banknotes (1893–1910)[34]which were legal tender in Queensland. Private bank notes were not legal tender except for a brief period in 1893 in New South Wales.[34]There were, however, some restrictions on their issue or other provisions for the protection of the public. Queensland treasury notes were legal tender in that state.After federationPrivate bank notes and treasury notes continued in circulation until 1910, when the federal Parliament passed the Australian Notes Act 1910 which prohibited the circulation of state notes as money and the Bank Notes Tax Act 1910 imposed a prohibitive tax of 10% per annum on 'all bank notes issued or re-issued by any bank in the Commonwealth ... and not redeemed'. These Acts put an end to the issue of notes by the trading banks and the Queensland Treasury. Also in 1910, the Australian pound was first issued as the legal tender in Australia. Now, the Reserve Bank Act 1959 expressly prohibits persons from issuing bills or notes payable to bearer on demand and intended for circulation.[35]The federal government established the Commonwealth Bank in 1911, which by 1913 had branches in all six states. In 1912, it took over the State Savings Bank of Tasmania (est. 1902)[36]and did the same in 1920 with the Queensland Government Savings Bank (est. 1861). As with many other countries, the Great Depression of the 1930s brought a string of bank failures. In 1931, Commonwealth Bank took over two faltering state savings banks: the Government Savings Bank of New South Wales (est. 1871) and the State Savings Bank of Western Australia (est. 1863). In 1991, it also took over the failing State Bank of Victoria (est. 1842).Nos 5 and 7 Sydney Road Manly in 1951, taken by Sam Hood for LJ Hooker, SLNSW 31789As a response to the Great Depression, banking in Australia became tightly regulated. Until the 1980s, it was virtually impossible for a foreign bank to establish branches in Australia; with the consequence that Australia had fewer banks compared to countries such as the United States and Hong Kong. Moreover, banks in Australia were classified as either savings banks or trading banks. Savings banks paid virtually no interest to their depositors and their lending activities were restricted to providing mortgages. Many of these savings banks were owned by state governments. Trading banks were essentially merchant banks, which did not provide services to the general public. Because of these and numerous other regulatory restrictions, other forms of non-bank financial institutions flourished in Australia, such as building societies and credit unions. These were regulated by state laws and were subject to less stringent regulations, could provide and charge higher interest rates, but were restricted in the range of services they could offer. Above all, they were not allowed to call themselves "banks".Play media1969 ABC news report on the introduction of ATMs in Sydney. People could only receive $25 at a time and the bank card was sent back to the user at a later date.From 1920, the Commonwealth Bank performed some central bank functions, which were greatly expanded during World War II. This arrangement caused some discomfort for the other banks, and as a result the Reserve Bank of Australia was created on 14 January 1960 and assumed the central bank functions previously performed by the Commonwealth Bank, including managing the currency, the money supply and exchange control.Adoption of new technologyBanks have adopted new technologies in order to reduce operating costs. The rollout of automated teller machines (ATMs) commenced in 1969. There are currently a number of ATM networks operating in Australia, the largest five of which are: the Commonwealth Bank-Bankwest network (with over 4,000 machines), NAB-rediATM network (with over 3,400 machines), Westpac-St.George-BankSA and Bank of Melbourne network (with over 3,000 machines), ANZ (with over 2,600 machines) and Suncorp (with over 2,000 machines), and others.[37]Financial institutions are linked via interbank networks.The use of the Bank State Branch (BSB) identifier was introduced in the early 1970s with the introduction of MICR on cheques to mechanise the process of data capture by the banks as well as for mechanical sorting and bundling of physical cheques for forwarding to the payer bank branch for final cheque clearance. Since then, BSBs have been used in electronic transactions (but is not used in financial card numbering).EFTPOS technology was introduced in 1984. Initially, only the banks' existing debit and credit cards could be used, but in 1985, the ATM (Financial) Network was created to link EFTPOS systems to provide access for all customers. Cards issued by all banks could then be used at all EFTPOS terminals nationally, but debit cards issued in other countries could not. Prior to 1986, the Australian banks organized a widespread uniform credit card, called Bankcard, which had been in existence since 1974. There was a dispute between the banks whether Bankcard (or credit cards in general) should be permitted into the proposed EFTPOS system. At that time several banks were actively promoting MasterCard and Visa credit cards. Store cards and proprietary cards, such as fuel cards and Bartercard, were shut out of the new system, though they use compatible technology.The widespread acceptance of credit cards and the development of SSL encrypted technology in mid 1990s opened the way to E-commerce. Telephone banking was introduced in the 1990s, with internet banking being introduced after 2001 and mobile banking after the 2010s. Bain, Research Now and Bain[38]along with GMI NPS surveys in 2012 found that 27% of Australians have had mobile banking transactions in the previous three months.[39]These innovations have resulted in significant shifts in banking in Australia away from the use of bank branches, and resulting in branch closures and staff cuts.[40][41]Deregulation and concentrationThe banking industry was slowly deregulated. In the mid-1960s, the distinction between and separation of trading and savings banks was removed and all banks were allowed to operate in the money market (traditionally the domain of merchant banks), and banks were allowed to set their own interest rates. Building societies were allowed to take deposits from the public. Foreign exchange controls were abolished and the Australian dollar was permitted to float from December 1983.Banking in Australia is notable by the small number of large banks in the market. Much of this concentration is the result of bank acquisitions. English, Scottish and Australian Bank was acquired by the ANZ Bank in 1970. In 1982, Bank of New South Wales merged with the Commercial Bank of Australia to form Westpac. There were many other bank mergers and acquisitions throughout Australia's banking history. The boom and bust of the 1980s was a turbulent period for banks, with some establishing leading market positions, while others being absorbed by the larger banks. Beginning in the 1980s, several building societies sought to convert to banks, but were required to demutualise before they were permitted to do so. This included NSW Building Society, which became Advance Bank, St.George, Suncorp, Metway Bank, Challenge Bank, Bank of Melbourne and Bendigo Bank. A change in regulations allowed building societies and credit unions to become banks without having to demutualise, and several including Heritage Bank have converted since 2011 while retaining their status and structure as mutual organisations.In 1990, the government adopted the "four pillars policy" in relation to banking in Australia and announced that it would reject any mergers between the four big banks.[5]The four pillars policy, however, has not prevented the four major banks from acquiring smaller competitors. In 2000, CBA acquired the Colonial group, which had emerged as a major bank–insurance combine in the 1990s, after the Colonial Mutual insurance group took over State Bank of NSW in 1994. The Commonwealth Bank also acquired the State Bank of Victoria in 1990 and BankWest in 2008. Westpac acquired the Challenge Bank in 1995, Bank of Melbourne in 1997, and St.George Bank in 2008.[7]The Australian government's direct ownership of banks ceased with the full privatisation of the Commonwealth Bank between 1991 and 1996. There was also increased competition from non-bank lenders, such as providers of securitised home loans. A category of authorised deposit-taking institution (ADI) was created for a corporation which is authorised under the Banking Act 1959 to take deposits from customers. The change formalised the right of non-bank financial institutions — such as building societies and credit unions — to accept deposits from non-members.Following the Wallis Committee Report, the Australian Prudential Regulation Authority (APRA) was established on 1 July 1998 to take over from the RBA the oversight of ADI's and other financial institutions in Australia, eg., banks, credit unions, building societies, friendly societies, general insurance and reinsurance companies, life insurance and most members of the superannuation industry. The Payments System Board (PSB) was also created, to maintain the safety and performance of the payments system.At the time, consumer credit in Australia was primarily loaned in the form of installment sales credit. The arrival of hundreds of thousands of readily employable migrant workers under the post-war immigration scheme, coupled with intense competition amongst lenders, discouraged proper investigation into buyers.[42]Concerns about the possibly inflationary impact of lending created the first finance companies in Australia.[42]In June 2017 the Treasurer, Hon Scott Morrison MP, initiated the Open Banking Review. Open Banking is to encourage more efficiency in the market, create new opportunities for market entrants, encourage competition and give customers greater control over their data. This was finalised in March 2018.[43]In 2018 APRA created a Restricted ADI Framework.[44]The framework is designed to encourage new entrants to the banking industry, particularly small firms with limited financial resources, to navigate the licensing process. Eligible entities can conduct a limited range of business activities for two years while they progress towards an unrestricted status. APRA announced and authorised the first Restricted ADI, volt bank limited, on 7 May 2018.

A few factors:Theological simplicityOther religions beliefs about God are frankly more complex than Islam. In Christianity for example, Christians have to keep trying to wrap their head around this Trinity concept. Even in Judaism where there is Oneness of God, they have to wrap their head around a theology of them being a Chosen People, sometimes favoured, most times punished, but still Chosen etc. Non Abrahamic faiths fair even worse in this regard. In Hinduism there’s a pantheon of gods, and Hindus have to wrap their head around which god to worship or ally with, when. Many don’t know what to do and simply adopt an idea of following tradition, follow what the family always did regardless of whether one understands it or not, or else something bad will happen. And while Islam allows the honoring and use of intermediaries, it’s entirely optional and secondary to the encouragement of talking to God directly and having a direct relationship with God. This is in contrast to other faiths, who often emphasize intermediaries, and their adherents may often not even talk to God at all, but stick only to intermediaries.Drive for social equalityIslam is perhaps the most anti-racist religion on earth. There’s direct ant-racist narrations by Muhammed pbuh as well as in the Quran. This is how, while Islam is not yet the largest religion, it is by far the most diverse religion in terms of adherents. Many other religions have on the other hand have become ethno-religions. Most far eastern religions are ethno-religions where their communities have taken a stance to be closed off, they’ve taken ownership of their beliefs, and it’s quite closely tied to their culture. Then there is Judaism which is very ethnocentric. Christianity may not be ethnocentric, but its adherents have historically pushed a racist pro-european stance on the world, especially with colonialism and enduring even up till today. Christianity may be non-racist, but it’s not specifically anti-racist. At least that has been the historic portrayal of it.Drive for economic equalityWhile Islam has no national economic and social policy, it has a very strong community socialist policy. Charity is very highly encouraged, and yet it’s encouraged in an informal way. Islamic institutions keep asking for donations, but it’s nowhere near the point of Christianity for example, where churches have a formal debit order system and paying tithes is practically a proof of faith. People are very weary of these things as many can potentially be scams to enrich pastors. Adherents have become accustomed to extravagant pastors and even Hindu priests, but Muslim adherents are especially weary of extravagant Imams.While other religions are famous for talking against slavery, Islam was the only religion that acted against it practically. Most people became slaves due to indebtedness and usury perpetuated it. Islam forbade usury, the act of living off interest. This placed a definite timeframe on a persons slavery to end. Islam also banned generational slavery so debts of a parent is not to be paid by the children.Liberal marriage and sex lawsIslam might often seem conservative, but that’s only compared to neo-liberalism. Compared to other religions, Islam has the most liberal marriage laws. A Muslim man is religiously allowed to marry a non-muslim woman provided she is a monotheist, and the non-muslim woman’s right to continue practicing her original monotheistic faith is enshrined in Islamic law. Polygyny is allowed under exceptional circumstances. Temporary marriage is allowed under exceptional circumstances. Divorce is also allowed. None of these things are allowed in other religions and even western neo-liberalism frowns upon many of these things. But with these kinds of laws, Islam was found appealing to many diverse communities and tribes throughout the world. Islam upheld the general idea of committed relationships while being liberal enough to allow numerous types of committed relationships that various cultures engage in. Islam also eradicated various other relationship issues that were stigmatized by many cultures. A young man marrying an old woman, or old man marrying a young woman, marrying widows/widowers, marrying divorcees, relationships that are often stigmatized even today, Islam has no time for such stigma and prejudices.Islam is even much more liberal than most mainstream religions concerning sex. In Catholicism for example, sex is icky no matter what. Even to get married to the person you love, do everything the right way, but still you must feel guilty of having sex for pleasure with your spouse, and try as much as possible to have sex only for procreation. Contraception is not allowed. With this sexual suppression, sex has thus been treated with satire and comedy, asserted as naughty or dirty. With Islam however, while adultery and fornication is staunchly condemned, sex with your spouse is very highly encouraged and seen as holy. Contraception is allowed. Foreplay, gentleness and sweet words are regarded as a must. Masturbation is allowed. Mutual masturbation and oral sex is encouraged. Satisfying and keeping ones spouse feeling happy and loved is considered as having completed half ones faith.While western media often flip flop between calling Islam too strict and suppressive in some ways and too perverted in other ways, these issues resonate with many people on a very personal level. It literally hits home, and Islam was thus very well received in this regard and continues to be well received for this.Rules of war and violenceIslamic law does not care for theoretical idealism, but rather practical realities. Other religions don’t really have rules of war and violence, and emphasize peace and passivism through a myriad of verses and flowery quotes. But if people cause war, these religions don’t really provide a framework of what is considered acceptable during war. War can thus become quite atrocious in addition to just simply being violent.While media criticize Islam for its rhetoric on war and violence, historically people have come to highly appreciate that Islam has laws on the subject of war at all. Islam accepts the practical reality that no matter what, there’ll always be bad people wanting to wage war and oppression and they will need to be fought. And they will need to be fought in a manner to as to restore peace, not until one side is completely exterminated or get out of hand into a tit-for-tat revenge atrocity.There’s laws against rape and torture. Laws on treatment of prisoners of war, laws against wanton destruction, laws against destruction of places of worship, against destruction of trees and vegetation, against infrastructure destruction, against animal abuse etc. The result is that while Muslim empires often engaged in war, their wars were comparatively much less atrocious and destructive than the common practice of others at the time. People highly appreciated the relative civility and principle of Muslim soldiers. War is a time when one people has great power over another, and when the powerful treat the powerless with principle, such a gesture cannot be overstated. It’s only since the 20th century that the UN began to develop a list of what is considered war crimes ie. things that are unacceptable even during times of war. Islam had such rules from the 7th century.