The
Australian Prudential Regulation Authority (APRA) will be tasked to infiltrate the non-bank sector for enhanced data gathering, according to Treasurer
Scott Morrison
APRA will have “eyes on the ground” with its ability to collect data from non-ADI lenders, Morrison said in an address to the Financial Services Council in Sydney yesterday (30 October).
“Such access will allow it to react quickly when unfortunate trends arise.”
This “future-proofing measure” will be added to APRA’s reserve powers over lending activity within the sector.
“We want the non-banking lending sector to be strong, vibrant and resilient, because it is vital source of competition in a market concentrated around five dominant players,” the Treasurer said.
In
a joint statement to the Treasury, Firstmac,
Liberty Financial, Pepper Group and RESIMAC warned that any APRA powers should be “limited to exceptional circumstances” where the non-ADI is threatening the stability of the financial system.
The government’s proposals are “unnecessary regulatory intervention” through an “extremely wide net” which creates uncertainty within the non-bank sector, they said.
“We recommend that the legislation be modified to facilitate a more targeted regulatory approach to avoid causing unintended instability in the capital markets, the non-ADI lending sector and the Australian economy more generally.”
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