Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

APRA tells banks: don't go too easy on borrowers

Notify me of new replies via email
Australian Broker | 13 Aug 2012, 08:00 AM Agree 0
APRA has warned banks to exercise caution when issuing mortgage repayment concessions to borrowers facing financial hardship
  • Bruce | 13 Aug 2012, 10:16 AM Agree 0
    As long as it is a genuine offer of assistance to the customer can anyone tell why a govt dept would rather their reporting be right rather then helping a customer in need. Govt gone made !
  • Judy West | 13 Aug 2012, 10:21 AM Agree 0
    Not to help borrowers undergoing financial hardship? What genius came up with this one?
  • ozboy | 13 Aug 2012, 10:29 AM Agree 0
    Why not set up a different category to report these types of loans under. Banks are often portrayed as heartless and now APRA asks them to stop helping people who are in distress.
  • VB Liquidity | 13 Aug 2012, 10:41 AM Agree 0
    APRA's comments are akin to offering a turkey shoot in a fenced in pen. The banks are being told to forget about social impacts of selling up their problem customers just flick the switch. I for one will be raising this with my local member of parliament. I don't want to see my struggling customers thrown to the wolves when a bit of commonsense can see them through the tough times and keep their family in their house. Flooding the market will also send prices spiralling down & will crystallise losses.
  • Rob C | 13 Aug 2012, 10:52 AM Agree 0
    Poor APRA! It "disrupts the Reporting Process.
    Do these people living in Crystal Palace Fairy land, understand the "real" world that we live in. In today's Australia, large corporations, once deviod of caring about money, as our illustrious Government was throwing money away at them has now dried up, these poor unfortunate souls that now find themselves at the mercy of having been or being retrenched have now under APRA's eyes now, basically NO opportunity to renegotiate terms for their loan,so it is "bad luck", you lose, well might I suggest, we fought TWO major World Wars, and numerous others,to stop tyranny & oppression from people like this.
    Very Un-Australian APRA.
    Hang your head in shame.
  • 15 years a Mortgage Broker | 13 Aug 2012, 11:13 AM Agree 0
    Talk about Ivory Tower decision making. these idiots would sing a different tune if it was them in a difficult situation because of retrenchment or no other fault of their own.....but hang on..theirs an election soon with promised significant reductions in the bureaurcracy...hehe....
  • Wayne | 13 Aug 2012, 11:24 AM Agree 0
    You know you are suffering from moral compass issues when you are telling a bank to stop being so nice and just foreclose on people’s houses because they are messing with your reporting.
  • Raman Arun | 13 Aug 2012, 11:33 AM Agree 0
    It is very heartening to see so many humane uprising from the 'field'. Wonder how the banks responded though!
  • Reading Comprehension Issues | 13 Aug 2012, 12:42 PM Agree 0
    APRA are simply reminding lenders that they need to include stuff under hardship or where outstanding amounts have been written off in their arrears/impaired reporting. APRA's job is to regulate banks for the benefit of deposit holders and it can't have bank's fudging their reporting to suggest they have fewer customers in strife than if fact they do.
  • Mark | 16 Aug 2012, 11:24 AM Agree 0
    This article is quite misleading and people should check their facts. Read the APRA letter which refers to AGN220 - it's on the APRA website. This does not state that lenders cannot give assistance to borrowers. It says that ADIs must correctly report these to APRA. THe reason for this is so that lenders cannot hide the extent of problems loans and to ensure that they hold sufficient capital to protect borrowers.
  • Rob B | 17 Aug 2012, 03:15 AM Agree 0
    We're all numbers and figures.....! APRA s concerned about incorrect categorisation and reporting, meanwhile our banking system has never been so strong and reporting massive profits in context of overall global banking performance. What problem, even if they turn a blind eye? Seriously!
Post a reply