Thursday , July 18 2019
Home / australia / Scott Morrison warns against the ill-conceived response to the royal commission of banks

Scott Morrison warns against the ill-conceived response to the royal commission of banks



Any major reduction in loans would damage the economy and hurt small businesses, he warned.

In a separate interview, cashier Josh Frydenberg reiterated that the prime minister is inclined to adopt all report recommendations, but he needs a weekend to study the tiny print after receiving Friday's findings. He added that the pace of lending to small entrepreneurship was still below the historical average, compared to last year, "and therefore we must be very aware of the response to the report to ensure a free flow of credit."

Prime Minister Scott Morrison runs a campaign in Brisbane this week.

Prime Minister Scott Morrison runs a campaign in Brisbane this week.Credit:Dominic Lorrimer

Australian banks have recently tightened up new lending to companies and potential buyers – which Mr Morrison described as a "partially almost instinctive reaction" to the Royal Commission.

The bank's reserve data posted on Thursday showed that the total debt of housing loans to Australian borrowers rose 4.7 percent last year, a decrease compared to 6.3 percent in the previous year. The housing loan debt rose by only 1.1 percent, a fall of a two-digit growth rate in 2015.

"The easiest way to ensure that no one is hurt is that no one is lending money, but if no one borrows money, everyone will be hurt." "I think we must be reasonable," said Morrison.

Loading

Large banks are concerned that publishing Hayne Commissioner's findings through close federal election campaigns could trigger a quick reaction from both sides of the policy as the industry is deeply unpopular to the public and that the investigation was the main political issue since it was first proposed in early 2016 . years.

"What the royal commission has so far discovered is what they call non-financial behavior," said Morrison. "So there is no problem with the stability of the system, but there are real problems with their behavior and I fully understand it, but we have to be careful, be careful what you want."

The prime minister will go on forming a law in May as an abbreviation for the economy.

"Shorten was popular in that place and was not guided by sound financial policies," he said. "He was just too enthusiastic, too quick to play on a political map on all this, but as prime minister who was a cashier, I realize that if you undermine your financial system, one of the worst things you can do is the Economy."

Loading

Shadow Treasurer Chris Bowen said that only workers can trust that they will restore confidence in the financial sector.

"Work also understands the critical importance of the banking sector in the heart of the Australian economy – but this should not serve as an alibi for bad banking behavior or crime," Bowen said.

Speaking during the brilliant places around Brisbane, Mr. Morrison also claimed that Australia had survived the global financial crisis due to the strength of its financial system.

"The reason we survived it was not because Kevin Rudd had exhausted the budget, it was because our banks held loans and none of them went under control. In the UK and other banks, banks fell everywhere – the US was bloodshed. "

Mr. Morrison praised Hayne's justice because he was aware of the tightening of the lending market and endorsing the deadline for February.

Discussions started in March and ended in November despite calls from work to extend the time frame to allow for a wider scope and more than 10,140 individuals and groups submitting submissions to voice their opinion on the spot for witnesses.

"Absolutely I would reject any suggestion that the Royal Commission did not consider any of these submissions," Mr Morrison said. "They are, and I think, a proposal from the work they are not, not offensive to the royal commission and the work they did."

Bevan Shields is the editor and chief of office in Canberra for the Sydney Morning Herald and The Age.

Most viewed in politics

Loading


Source link