More great work from Martin North today as he discusses the fallout from the Hayne Royal Commission with Professor Gill North:
The conclusions are sobering for banks, brokers, regulators and credit provision going forward. The violations of responsible lending laws includes:
- inappropriate use of high risk and interest-only loans;
- failure to obtain data for loan serviceability;
- failure to verify data and
- more egregious personal misconduct.
The commission is likely to recommend changes to enforce existing law rather than deliver new laws. In short, regulators have been caught napping.
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