ASIC responsible lending guidance important for stability

Today’s
release of ASIC’s updated RG 209 Credit Licensing: Responsible lending
obligations is an important milestone in clarifying responsible lending
obligations for banks.

CEO of the Australian Banking Association Anna Bligh said that
the updated RG 209 would provide clarity to banks on ASIC’s views on what responsible
lending obligations require before offering credit to customers.

“Our member banks take their responsible lending
obligations seriously as they seek to comply with the law and meet customer demand
to access timely and appropriate credit,” Ms Bligh said.

“This is
an important document for the industry to guide each bank’s approach to
responsible lending which we will now study closely to assess any impacts it
may have on borrowing for customers.

“The
industry is pleased to see ASIC has maintained a principles based approach to
lending, which as an industry we have called for, and to ensure banks are able
to fulfil their obligations without the process becoming too restrictive for
customers.

“The
industry also welcomes ASIC providing greater clarity in some areas, such as
where it is difficult to determine income from certain customers, such as small
business owners and gig economy workers,” she said.

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