APRA wants shield from government interference

by AB30 Jun 2014
APRA wants a more hand-off approach from the government, leaving it free to regulate banks without interference.

Outgoing APRA executive chairman has told The Australian Financial Review the regulator wants distance from government intrusion on plans for closer scrutiny of the banking sector. Laker said APRA previously had the same mechanism protecting it from government interference as the RBA, but that the measure was scrapped in 2003.

“We’re not looking for anything more than what was in the original vision of the Wallis inquiry. Previously we had the same mechanism as the RBA and that was moved to a mechanism more akin to what ASIC,” he told the AFR.

Laker also rejected claims of a housing bubble in Australia, saying that lending standards had improved and lenders were still showing caution.