The Australian Prudential Regulation Authority is to face a parliamentary inquiry on suspicion it is acting too aggressively.
The House of Representatives Standing Committee on Economics has established an inquiry that will require APRA top dogs to appear regularly before public hearings, to face similar scrutiny as officials at Reserve Bank and Australian Securities and Investment Commission.
APRA will face questions over whether it is moving too aggressively in implementing global capital rules, and whether it is getting the balance right between making the financial system stable, and over-regulating.
Claims that APRA was acting ahead of the world in implementing Basel III capital rules were also likely to be discussed, reported Sydney Morning Herald.
APRA has been making waves in the broker world this week, after announcing draft residential mortgage lending guidelines which discourage up-front commissions and propose that claw back policies be strengthened to include higher levels of delinquency and process failures.
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