Australia plans to roll back"responsible lending" laws adopted in the wake of the financial crisis in an effort to spur an economic recovery from the coronavirus pandemic, officials said Friday, September 25.
The laws require lenders to take steps to determine if potential borrowers will be able to repay their loans in hopes of avoiding a repeat of the crisis sparked by the subprime mortgage meltdown in the US."Across time, lenders have become increasingly risk averse and overly conservative. As a consequence, borrowers, irrespective of their financial circumstances, have faced an ever more intrusive, difficult, and drawn-out approval process," he said.
The"government's proposed reforms will remove bank responsibility to customers, opening up new opportunities for banks to aggressively sell debt," said a grouping of 4 consumer advocacy organizations.
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