Banking and Financial Services

The same number of senators voted for and against a motion introduced by Tasmanian Senator Nick McKim (Greens), which means it failed.

Motion text

That the Senate—

(a) notes that:

(i) the Government's proposed consumer credit reforms would:

(A) repeal responsible lending obligations that require banks to ensure that a loan is not unsuitable for an individual customer; and

(B) instead rely on prudential standards to manage risk and ensure the quality of consumer loans,

(ii) just this week:

(A) Westpac, Australia's oldest bank, admitted that it breached prudential standards by failing to meet liquidity requirements, and

(B) the Australian Prudential Regulation Authority said this demonstrates weaknesses in risk management, risk control and risk culture, and

(iii) these breaches of prudential standards were discovered during 2019 and 2020, after the Hayne Royal Commission, that was meant to bring an end to misconduct by the banks; and

(b) calls upon the Government:

(i) to honour its agreement to recommendation 1.1. of the Hayne Royal Commission, that the National Consumer Credit Protection Act 2009 not be amended to alter the obligation to assess unsuitability; and

(ii) ensure that, in the words of Commissioner Hayne, the law is applied as it stands.