Sunday , April 11 2021

Scott Morrison warns against the fast response to the royal bank commission

Any major reduction in loans would hurt the economy and would hurt small businesses, he warned.

In a separate interview, Treasurer Josh Frydenberg echoed the Prime Minister stating that the government was willing to adopt all the recommendations of the report, but needed the weekend to study the small print after receiving the results on Friday. It added the pace of loans to small businesses, while from last year, it was still below its historical average, "and that's why we must be very aware when responding to the report that we guarantee the free flow of credit. "

Prime Minister Scott Morrison fights in Brisbane this week.

Prime Minister Scott Morrison fights in Brisbane this week.Credit:Dominic Lorrimer

Australian banks have recently tightened up new loans to companies and potential home buyers, which Mr. Morrison described "in the part an almost instinctive reaction" to the royal commission.

Reserve Bank data released on Thursday show that total homeowner debt to Australian borrowers grew 4.7% last year, up 6.3% year-on-year previous Investor homeowners' debt grew by only 1.1% – down from double-digit growth rates by 2015.

"The easiest way to make anyone do wrong is not lend money to anyone, but if nobody gets money, everyone is hurt, I think we have to be reasonable," Mr Morrison said.

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The big banks worry about the launching of Commissioner Hayne's conclusions as close to the federal election campaign that it could trigger a rapid response from both sides of the policy given that the industry is deeply unpopular with the public and the investigation It has been an important political issue since Labor proposed for the first time at the beginning of 2016.

"What the royal commission has discovered so far is what they call lack of non-financial conduct," Mr Morrison said. "Therefore, there is no problem with the stability of the system, but there are real problems with your behavior and I fully understand it, but we have to be careful. Be careful with what you want" .

The prime minister will go to the election of May, linking Bill Shorten as a risk to the economy.

"Shorten has been a populist of rank in this and has not been driven by good financial policy," he said. "He has been too enthusiastic, too fast to play the letter of policy on all this. But as the first minister who was treasurer, I have to do it if you undermine your financial system, which is one of the worst things you can do with your economy ".

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Shadow Treasure, Chris Bowen, said that only work could be trusted to rebuild confidence in the financial sector.

"The work also understands the fundamental importance that the banking sector plays in the center of the Australian economy, but this should not be used as an alibi for bad conduct or criminality," Bowen said.

Speaking during a bombardment of marginal seats around Brisbane, Mr. Morrison also claimed that Australia survived the global financial crisis due to the strength of its financial system.

"The reason we survived was not because Kevin Rudd blew up the budget, it was because our banks kept the loans and none of them entered. In the United Kingdom and other countries banks were falling all over the country : The USA was a bloodbath. "

Morrison praised Justice Hayne for having become aware of a tightening of the loan market and keeping the deadline for February.

The hearings began in March and ended in November despite the calls for work to expand the calendar to allow a wider reach and more than 10,140 people and groups that presented presentations to tell the witness.

"I would absolutely reject any suggestion that the royal commission has not considered any of these communications," Mr Morrison said. "They have and I believe that the suggestion of the work they do not have is offensive to the royal commission and the work they have done."

Bevan Shields is the federal editor and head of the Canberra office for The Sydney Morning Herald and The Age.

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