Money Bank of Queensland backs review of APRA's home loan caps

18:50  12 february  2018
18:50  12 february  2018 Source:   theage.com.au

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Bank of Queensland chief executive Jon Sutton backed debate on APRA ' s home loan caps . “What I am advocating is that there is constant review about the measures that have been taken, how they are performing, and are they fit for purpose as the economy stands at the moment, or as the

Bank of Queensland backs review of APRA ' s home loan caps . The Sydney Morning Herald 176d. Brisbane apartment market has Bank of Queensland on alert.

Bank of Queensland chief executive Jon Sutton backed debate on APRA's home loan caps.© Daniel Munoz Bank of Queensland chief executive Jon Sutton backed debate on APRA's home loan caps. Restrictions on the mortgage market should remain under "constant review" as debate shifts towards how regulatory curbs on home lending may be refined to promote competition, says regional lender Bank of Queensland.

After the Productivity Commission last week criticised as "excessively blunt" the banking regulator's caps on interest-only and property investor loans, BoQ chief executive Jon Sutton the curbs had clearly achieved the goal of taking heat out of the home loan market.

Mr Sutton said in an interview he supported debate about how best to implement the "macroprudential" policies that had been introduced by the Australian Prudential Regulation Authority, pointing to more targeted interventions than the across-the-board caps introduced by APRA.

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Bank of Queensland backs review of APRA ' s home loan caps . Lending restrictions in the mortgage market have entrenched the big four's market share, says BoQ.

Bank of Queensland . 1.6 from 203 reviews . Write a review Ask a question. We have applied the home loan 2 times in this bank under their CPA offer but they have just rejected our APRA has also provided a questions and answers summary of the Financial Claims Scheme on their website. •

A key complaint about the APRA policy from smaller lenders including BoQ is that the caps have stifled competition, and this criticism was picked up in a landmark inquiry last week by the Productivity Commission.

“What the most recent macroprudential measures have done is really fundamentally entrench the market share positions of all the banks in that particular market,” Mr Sutton told Fairfax Media.

“I think that probably where we’re getting to at the moment, and I’m not being critical of what APRA did, is that there are different ways or different methods of looking at how macroprudential can be implemented, whether it’s by post-code, or whether it’s some banks have less, some banks have more.”

“What I would advocate, and what I am encouraged by, is there is more open debate about how macroprudential measures are deployed.”

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1 out of 5, reviewed on Jul 11, 2018. I have had my home loan with bank of Queensland for just over 3 years. I called the bank 3 times to renegotiate and no-one called me back . Went into the branch to talk to the manager who said she had organised a great deal for me, still almost 3/4 of a percent

If you’re looking to pay off your home loan sooner, BOQ’ s home loans gives you the flexibility to make extra repayments whenever you like and without penalty with the exception of the fixed loan which caps additional repayments at ,000 Bank of Queensland home loan review . Overall rating 9 / 10.

Under APRA's policy introduced last year, all banks must keep new interest-only lending at less than 30 per cent of new loans. Since late 2014, banks have also had a 10 per cent a year speed limit on the growth in their housing investor loan books.

Yet with both types of lending now well below these caps, and house prices dipping in Sydney and Melbourne, Treasurer Scott Morrison last week described APRA's lending restrictions as "malleable," suggesting the regulators could wind the curbs back if the housing market were to fall sharply.

Mr Sutton said macroprudential policy was ultimately a decision for regulators, but highlighted the risk of choking off credit, which could affect the broader economy.

“What I am advocating is that there is constant review about the measures that have been taken, how they are performing, and are they fit for purpose as the economy stands at the moment, or as the housing market stands at the moment.”

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Find your next banking solution at BOQ, including bank accounts, credit cards, home loans , personal loans , savings and investments and insurance. Full terms and conditions are available online or at any Bank of Queensland branch.

NSW. Victoria. Queensland . ACT. Western Australia. APRA chair Wayne Byres said a 10 per cent cap on housing investor loan growth may be had not thrown up any evidence of illegal activity by the banks that he was aware of, and APRA would share the review research with the commission if asked.

Mr Sutton was speaking after the Productivity Commission also took up some of the other key concerns raised by regional banks in their submissions, including complaints that bank capital rules are too tough on smaller lenders.

Mr Sutton said he was "very heartened" by the PC report's findings, including its recommendations that APRA consider narrowing the gap in how much equity capital smaller lenders must set aside for every dollar loaned out, compared with larger banks.

He supported the PC's proposal for giving a regulator the explicit goal of promoting competition in financial services, but did not give an opinion on its recommendation to get rid of the "four pillars" policy that prevents the big banks from merging.

Despite Mr Morrison's comments last week, APRA chair Wayne Byres on Friday said the regulator was "not declaring victory just yet," as it wanted to see improvements in lending standards "truly embedded" into the banking industry's practices.

Suncorp, another key supporter of the PC inquiry, said was pleased to see its ideas had been taken on in the draft report, and it was working its way through its formal response.

"We believe this is the best opportunity in years to develop reforms that will support a productive, competitive and sustainable banking sector where all banks compete on a level playing field, as this will ultimately benefit customers, and the economy," Suncorp said.

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Source: http://au.pressfrom.com/news/money/-55091-bank-of-queensland-backs-review-of-apras-home-loan-caps/

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