Don Argus the ex NAB chairman is right in saying that the removal of the more stringent responsibility lending regime enacted following the Haynes commission enquiry will not result in a surge of bank lending, contrary to what most expect , but will result in smaller fintechs making more predatory lending. He did not say it but in effect the fintechs trying to win market share will make those loans and eat the big banks lunches and market share. And they (fintechs) could end up creating the financial mess we seek to avoid.
That does not sound to me as being positive for the big 4 banks, who now have new leadership and have learnt their big lesson(s) to rejuvenate public faith in their respective franchise.
The question for the CEOs of the big banks is if they are prepared to stay the course on their revamped culture of responsibility lending or discard them in the light of the Treasurer's new policy to avoid the fintechs eating their lunches. But of course in the meantime you only hear them speak approvingly of the deregulation.
The U-turn in the Treasurer's policy away from responsible lending is to undo all the work and findings and recommendations of the Haynes Commission.
This on economic pragmatism , not principle. Earlier, was Scomo's remarks in the UN re: China on the basis of principle not economic pragmatism. It does get confusing doesn't it but at the core of it, it probably comes down to political pragmatism and opportunism.
