The Customer Owned Banking Association welcomes the Government’s announcement that it will simplify Australia’s credit framework to ensure consumers and small business can get timely access to credit.
“We look forward to seeing the detail of the Government’s proposals but the objective of simplifying unnecessarily complex regulation has our strong support,” said COBA CEO Michael Lawrence.
“Customer owned banking institutions have always been responsible lenders – putting our customers first is part of our DNA. We certainly don’t need prescriptive and complex laws to make sure that we lend responsibly.
“Our sector’s sound lending practices are also subject to strong prudential oversight by APRA.
“The Government is right to take decisive action to promote lending at a time of great uncertainty and the biggest peacetime economic contraction since the 1930s.
“This environment requires policymakers and all stakeholders to bring a new lens to all regulatory settings.
“There are multiple layers of regulation applying to lending so simplifying these regulations while maintaining strong consumer protection, particularly for vulnerable consumers, is very welcome.
“This is good news for borrowers and lenders. Applying for a loan will be a simpler process.
“Unnecessary and duplicative regulation hurts consumers because resources are diverted away from investment in product innovation, better service and better pricing.
“Consumers can also be subject to unnecessary delays and frustrating paperwork.
“There is also the broader deadening effect on the economy’s dynamism of too much regulation.”
