Greens Economic Justice spokesperson, Senator Nick McKim, responded to reports today that the government will loosen lending standards and relieve the banks of responsibility for determining a customer’s loan capacity to service a loan.
“Today’s announcement shows exactly where this government’s allegiances lie," Senator McKim said.
“The day after Westpac received the largest corporate penalty in Australian history, the government is changing the rules to benefit the banks."
“Looser lending standards will result in higher profits, higher dividends, and more money to flowing into the most overpriced housing in the world."
“This will perpetuate the cycle of high household indebtedness, falling home ownership, and greater financial instability."
“This is not the pathway to recovery."
“We’ve just had a Royal Commission that showed the banks' blatant disregard for the welfare of consumers and their willingness to engage in unlawful and predatory lending.
“And what’s this government’s response? Instead of making the banks abide by the law, they’re changing the law to abide by the banks."
“Switching the onus of evaluating loan serviceability onto customers will mean the banks shove money down the throat of anyone with a heartbeat."
“This is foie gras for banking."
“I am hopeful that the Senate crossbench will join the Greens in opposing the overturning of the National Consumer Credit Protection Act."
“So I ask Labor today: Whose side are your on? Consumers or the banks? The real economy or real estate speculation?”