"So APRA's prudential audits are a waste of time? Certainly not...

"So APRA's prudential audits are a waste of time? Certainly not my experience"

Have you ever actually been subject of an APRA or ASIC review? Personally I have on many occasions, and each time they are certainly left wanting.

I would like to understand from you which prudential standard (i.e. one beginning with an 'APS') dictates how a bank manages its credit policy? Or ensures the bank underwrites the 'right' type of asset? I'm going to be very interested to see what you provide (if anything)!

Not one thing you have said brings any level of critique to my previous posts. If all you can say is 'APRA will keep an eye on them' then please prove how APRA does / will do this?

As I have stated in the past (and is reflected in their external rating - just go have a look at the S&P report):

- MYS is a non-systemically important bank meaning it will not receive federal government support beyond the deposit guarantee in the event of its default. This will not protect equity investors
- It has a very narrow earnings base by the number of loans, the type of loans and the geographic diversity in the type of loans it writes
- it has a very narrow funding base both from funding type and geography
- it has no CRO from what I can see, as mentioned above, putting to question its on-going risk management ability
- they are operating off a high risk economic base with the Tasmanian economy consistently underperforming
- it is materially increasing the risk of its balance sheet by aggressively growing its loan book base via brokers. Brokers who try and compete on price and terms, meaning MYS will have either underpriced the risk to win more customers, or lowered terms to attract the borrowers the other larger banks reject. Or both.

Please stick to the facts. Don't look at the past results because this is a very different bank to the past 10 or even 5 or 2 years. Management has completely changed. Strategy has completely changed. The composition of the loan book and earnings has changed. It will take a cycle to see how truly ugly the new strategy is, but no doubt it is there.

I'm looking forward to how you counter these points other than saying 'but they pay out a lot of dividends' and 'APRA will make sure they are well run'.