Writing in the AFR, Tribeca’s Sean Fenton discusses the impact the Royal Commission may have across the broader finance sector:
“Revelations at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry have impacted many stocks, but the focus on responsible lending across the banking sector has the potential to drive wider-ranging economic impacts.
The Australian housing market has already been softening following moves by APRA to limit interest-only lending in an effort to contain runaway house prices.
The tightening in credit availability and repricing of mortgages by the banks has seen a decline in auction clearance rates and house prices in nearly all capital cities.
This dynamic is likely to be exacerbated by a tighter focus on responsible lending standards driven by the royal commission, particularly with actual expenses being scrutinised as opposed to unrealistically low expenditure benchmarks and more documentation around income.”
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