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Frydenberg weighs the fall of the royal commission

Treasurer Josh Frydenberg is a balancing event. On the one hand, the bank encourages the maintenance of loans. But, on the other hand, Hayne's push can be encouraged to make rules more stringent for banks' abilities.

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Frydenberg undoubtedly wants to control the entire report of the government's response. The government will receive a report from the royal commission on Friday, then release and respond to it on Monday in Canberra.

Political response to his movements will come straight to Monday afternoon. The financial sector's variations will be a second wave, and banks will react on Tuesday.

The voters were worried about the behavior of banks, wealth managers and insurance companies, and they had heard the kings' boards over the years. They want to hurt them.

Likewise, to enforce laws and laws, this behavior will not happen again, and from then on ethics and people will gain a profit from the bank.

In fact, government or opposition, nothing would be a political suicide.

There is a limited economic problem for many issues raised by the Commission for difficult normalization.

The most obvious exception is responsible borrowing. It is not questioned that banks should have more issues with the ability to maintain interest payments on the loan. It should be underlined by the expense of a lender.

The use of external benchmarks, the cost of household expenses (HEM), which measured the costs of the banks, is not enough. It was necessary to study the cost of the loan, which was a good test.

Most accounts banks have raised their gambling – a vision that the Australian Prudential Regulation Authority pointed out in the regulation.

Investors breathe on Monday thanks to Kenneth Hayner's discovery.

Investors breathe on Monday thanks to Kenneth Hayner's discovery.Credit:Brook Mitchell

But Canberra is aware that securing loans to banks by the Bank's lending manager (one year, but not in a row or under control) will reduce their credit and may have an adverse effect on the economy.

As with financial institutions, most of the issues with bad practice, emergencies have to deal with problems and deal with them first, such as payroll models.

Compensation for the affected customers is also on the train. Some organizations have done more than others seriously.

Regarding liable responsibility, banks do not have a heavy weight. HEM is less than just now, and banks are increasingly conservative in mortgage loans.

The reduction of the ability to offer loans and appetite loans, especially when the property market is falling, will have a negative impact on the economy.

Wishful thought

From work perspective, the answer is clear. Opposition treasurer Chris Bowen said in a recent interview with Australian Financial Analysis that "if your top priority is recommended by the royal committee, it must be done."

Bowen argues that the current uncertainty about credit standards is blamed, and the reinstatement of incentives that the banks would have to clear clear after the release of the Hayne report.

It seems like a wonderful thought.

Banks should probably say that they are responsible for lending law, thorough checking of loan costs, using comprehensive credit report tools and knowing the amount of contractual HEM.

Even if employees or mortgage brokers' volume incentive payments are abolished by August, credit growth will depend on quick pressures.

Elizabeth Knight makes comments about companies, markets and the economy.

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