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.
