And I thought “Evil” Anna Bligh had disappeared. But no, via Banking Day:
The banking industry is opposed to key parts of ASIC’s proposed overhaul of its guidance on responsible lending conduct, criticising it as a move away from principles-based regulation to a more prescriptive approach, and claiming it will disadvantage small financial institutions and new entrants that won’t be able to pay for the technology upgrades required.
ASIC says: “We have observed since the start of the responsible lending regime instances where licensees have failed to take sufficient steps in order to comply with their obligations.”
In response, the Australian Banking Association submission says: “The ABA supports the retention of a principles-based approach to responsible lending through the legislative provisions contained in the NCCP Act, as well as in relation to relevant regulatory guidance.
“A principles-based approach focuses regulated entities on developing their own approaches to achieve compliance with responsible lending obligations and shifts their regulatory focus from process to outcomes. We believe a prescriptive approach will not provide a net benefit to customers.”
The ABA says a more prescriptive approach may result in delays in obtaining credit, increases in the cost of credit…
That is, lending might be responsible. You know, and prevent RBA rate cuts from blowing yet more asset bubbles.