The appalling proposed changes to Responsible Lending got stalled in the Senate last week. But the Government is going to try and convince the cross-benches they should be passed for the sake of the SME sector.
However, this is absolute misdirection, as SME lending (globally as well as locally) are impacted by a range of broader factors, including the risk-weights, which explain the reason for credit rationing. It has nothing to with Responsible lending, it is just a convenient excuse to try and push the opposition over the line. Just remember the Hayne Royal Commission clearly recommended keeping the current consumer protections. And also, SME lending is in any case not subject to Responsible Lending provisions. This is a dog-whistle by a desperate Politicians keen to serve their Banking masters.
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