Lending laws no problem, ASIC insists

Original article by Michael Roddan
The Australian – Page: 17 & 18 : 8-Jul-19

The Australian Securities & Investments Commission has been blamed in some areas for falling house prices and a decline in credit growth, due to a perception that it is taking a tougher approach to responsible lending. However, ASIC commissioner Sean Hughes notes that responsible lending laws have not changed since 2010, nor has its guidance in this area. ASIC advised in February that it will release an updated guidance note on responsible lending by September.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Regulation slows loans: bank chief

Original article by Eli Greenblat
The Australian – Page: 1 & 2 : 4-Jan-19

Westpac chairman Lindsay ­Maxsted says the banking major is continuing to lend, but increased regulation of the sector means it is taking longer to approve loans. Maxsted adds that the focus on responsible lending obligations could have an adverse impact on the Australian economy. A number of business leaders have expressed similar concerns, and they have backed a call by federal Treasurer Josh Frydenberg for banks to keep providing access to credit.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, SOUTH32 LIMITED – ASX S32, ANSELL LIMITED – ASX ANN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN AGRICULTURAL COMMODITIES PTY LTD, NUFARM LIMITED – ASX NUF, KPMG AUSTRALIA PTY LTD

No credit crunch: RBA blames investors for property slowdown

Original article by Andrew White
The Australian – Page: 17 & 21 : 27-Nov-18

A regulatory crackdown on investor and interest-only property loans has seen growth in housing credit fall below five per cent in 2018, compared with around seven per cent in 2015. However, the Reserve Bank of Australia’s assistant governor Christopher Kent says high-quality borrowers can still gain access to credit at competitive rates. He notes that there appears to have been a larger fall in the average interest rate for investors than owner-occupiers in the last year.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY

Credit won’t predict next crisis, but gives protection

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 13 & 17 : 7-Nov-16

Alexander Funds Management MD Chris Black notes that credit markets anticipated the global financial crisis well before equity markets. He says the GFC was primarily a credit-driven event, but this will not be the case with the next financial market crash. He adds that credit will be a safer asset class when the next financial market downturn comes. Alexander Funds has delivered a return of 16.64 per cent since it was founded as Laminar in 2009, but Black cautions that investors should not expect returns similar to those in the years immediately after the GFC.

CORPORATES
ALEXANDER FUNDS MANAGEMENT PTY LTD, CROWN RESORTS LIMITED – ASX CWN