that while it was important to implement the findings of the royal commission, as well as other reforms such as the Banking Executive Accountability Regime, “we need our banks to keep lending”.
Interesting comment from a Prime Minister whose immediate past job was as Treasurer who role, amongst other things, included the oversight of APRA, ASIC and the RBA.
So. Let’s get this right.
The Prime Minister and the RBA want banks to lend more but ASIC doesn’t because of responsible lending policies which ….. ASIC wrote based on vague legislation passed by the Parliament. Don’t believe TAFKAS? Have a look at ASIC appealing their recent loss in the Westpac-Wagu-Shiraz case.
APRA impose additional capital and compliance requirements on banks which increase their costs of operation and cost of capital meaning that (everything else equal) the rates at which banks lend need to go up, but the Prime Minister, Treasurer and RBA complain about banks not passing on RBA rate decreases — as if the banks source the majority of their funding domestically in the first place.
The RBA and APRA prattle on about the costs and impacts of climate change and yet when the banks don’t lend on climate intensive projects, because of the costs and risks (most significantly regulatory and sovereign risk), the Prime Minister, Treasurer and other members of the government complain.
Where is Kafka when you need him?
Would it be too much to ask to put these people in a room to get a policy consensus and consistent position? Ok. With all the senior public servants involved, perhaps can we get them into the MCG to come to a consistent position.
And they wonder why businesses are returning funds to shareholders. Who can do business in this insane asylum.
Oh and the Government wants, through APRA, to regulate the remuneration and appointment of people onto bank boards and executive positions.
The number of people in this world who could capably attempt to dance on this regulatory needle tip are so few, but yet the wise folk at APRA, most of whom have never worked in the private sector, let alone a bank, think they know best.