As the Hayne Royal Commission prepares its interim report, the panic is growing. Citi expects Hayne to expose “systemic over-lending”:
In our view the most material conclusion of the commission is likely to be that the lending process presently isn’t sufficiently responsible. Responses to this issue are likely to involve increased due diligence which will impact the growth and availability of credit further to existing measures.
[Bank systems] have allowed them to lend too much…This is visible across the system, with issues in mortgage broking all the way through to expense verification.