that thesis implies that banks previously relied on writing...

that thesis implies that banks previously relied on writing affordable inappropriate loans (which happens to be economic suicide), and now that there has been a royal commission weeding out some of the truly disgraceful acts of by some entities, they will no longer be profitable because they can't write inappropriate and affordable loans. I think you'll find that banks will continue to write loans for customers that can afford them, and that comply with their lending criteria. There is enough hyper fear in the poor Aussie markets because mr and ms suburbia's house didn't go up by 10% this year without this further nonsense about banks not being profitable.