The credit-addled AFR comes out swinging for shadow banks today:
Shadow banks will protest over the extensive new powers being given to the prudential regulator which may curb their lending, increase funding costs and threaten to exacerbate the severity of any housing market downturn.
Big non-bank lenders such as ASX-listed Pepper Group, Resimac, Firstmac, Latitude and Liberty Financial are preparing submissions to Treasury to highlight the risks of the law. These risks include the potential to restrict credit to home buyers who won’t be able qualify for loans if the stricter rules now being applied to banks are extended to non-bank lenders.