U-turn on banking system possible, says Naylor

by Caroline Dann10 Aug 2012

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.
MFAA 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.”
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  • by Incognito 10/08/2012 10:32:40 AM

    This is important work and I am happy to be a contributing member of the MFAA.

    Four years in a row at the senate hearing - well done Phil.

    Free riders who dropped out of the MFAA (for whatever reason) should get back on board, Lets go.

  • by Larz 10/08/2012 10:33:47 AM

    Well done to the MFAA. This is exactly what an industry association should be doing to assist members. Better than golf days.

  • by Patrick 10/08/2012 10:41:23 AM

    The more things change the more they stay the same. We used to have government guaranteed securitisation, it was called HLIC (Housing Loans Insurance Corporation) and its mortgage insurance underwriting was guaranteed by the Commonwealth. The baby got thrown out with the bathwater.