MFAA CEO Phil Naylor’s recommendations to adopt a Canadian banking system – which promotes fair competition between majors and non-majors - may finally be gaining traction.
Naylor presented his case to a senate hearing yesterday – for the fourth time in as many years.
He told Australian Broker Online the reaction this year was overwhelmingly positive.
“I was pleasantly surprised by the bipartisan and favourable reaction to our submission from senators,” he said.
In Canada, the government guarantees securitised funding, which provides a vital lifeline to banks.
has been pushing the benefits of the Canadian Mortgage Backed securities and Canadian mortgage bonds for the past four years.”
Naylor said senators showed a “clear acceptance” this time around that non-majors are essential to a healthy, competitive industry.
“If the reaction to our submission is any guide, I would be confident of seeing some positive changes in the next few years.
“But this depends on the final decision of the government which is not necessarily bound by Senate Committee recommendations. That is why we will continue lobbying our point of view.”
He said brokers could only benefit from a diverse range of lenders, as their key goal was to provide “appropriate finance to their clients.”
“More competition also produces more innovative products.”