Frydenberg colludes with APRA to water down Hayne

The Hayne Royal Commission is quickly disappearing in the rear view mirror, with Treasurer Josh Frydenberg meeting with senior APRA officials to craft the government’s response. From SBS News:

Mr Frydenberg met with Australian Prudential Regulatory Authority deputy chairs Helen Rowell and John Lonsdale in Sydney, just days after the Morrison government was returned to power.

One of the key tasks for the government will be responding to the recommendations of the royal commission into misconduct in the banking, superannuation and financial services industry.

…ARPA on Tuesday suggested banks change the way they assess customers’ ability to meet their mortgage repayments in a move analysts say will increase the amount people can borrow and could even stem the fall in house prices.

Call us cynical, but you can bet your bottom dollar that the official response to Hayne will be soft. We’ve already witnessed APRA cut its interest rate buffer and the government deploy a reckless first home buyer deposit subsidy and junk the Royal Commission’s mortgage broker reforms.

Make no mistake, lending standards will be eased further. The fix is in.

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