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at 12:00 pm on June 2, 2021 | 3 comments
RBA Governor Phil Lowe last year endorsed Treasurer Josh Frydenberg’s proposal to axe responsible lending rules, telling the Standing Committee on Economics that Australian mortgage restrictions had become too strict and were constraining the economy:
“We can’t have a world in which, if a borrower can’t repay the loan, it’s always the bank’s fault. On a portfolio basis, we want banks to make some loans that actually go bad, because if a bank never makes a loan that goes bad it means it’s not extending enough credit”…
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at 1:00 pm on May 7, 2021 | 8 comments
RBA Governor Phil Lowe last year endorsed Treasurer Josh Frydenberg’s proposal to axe responsible lending rules, telling the Standing Committee on Economics that Australian mortgage restrictions had become too strict and were constraining the economy:
“We can’t have a world in which, if a borrower can’t repay the loan, it’s always the bank’s fault. On a portfolio basis, we want banks to make some loans that actually go bad, because if a bank never makes a loan that goes bad it means it’s not extending enough credit”…
MacroBusiness
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As we know, the Hayne Banking Royal Commission’s first recommendation was to maintain responsible lending laws:
Source: Hayne Banking Royal Commission Final Report.
The Hayne Royal Commission came to this recommendation after observing multiple cases of predatory lending over its 12 month deliberation.
Despite this recommendation, Treasurer Josh Frydenberg is currently seeking to abolish responsible lending laws following pressure from the banking industry, who claim such rules are a handbrake on credit. Never mind that new mortgage commitments are running at record high levels, which completely debunks their claim.
Bizarrely, RBA Governor Phil Lowe also tacitly supported the abolition of responsible lending rules, last year telling the Standing Committee on Economics that Australian mortgage restrictions had become too strict and were constraining the economy:
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Australia s economic recovery very rapid : NAB CEO16/04/2021|4min
One of Australia s biggest banks has described the nation s economic recovery as very rapid.
National Australia Bank CEO Ross McEwan is appearing before the Standing Committee on Economics where each bank CEO is being asked to sum up Australia’s economic recovery.
Commonwealth Bank CEO Matt Common described the recovery as miraculous, with the head of Westpac also saying it was a good comeback from the COVID-19 recession.
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