01 Oct APRA Curbs Unfair, Say Banks
Second-tier lenders, including Suncorp, Bank of Queensland and industry super-owned ME, are calling on APRA to revise lending restrictions which are effectively ‘locking in’ the market share of the big four banks and restricting competition.
For almost three years, banks have faced a 10% annual growth cap in their housing investor loan portfolios, enforced by APRA. In March this year, APRA imposed a further restriction, capping interest-only lending at 30% of new loans.
The smaller banks say this is stifling competition and want the restrictions to be only applied to the hottest property markets such as Melbourne and Sydney, or to have tougher conditions placed on the big four and not the rest of the industry.
Suncorp’s chief executive of banking and wealth, David Carter and Bank of Queensland chief Jon Sutton agree the focus point should be Sydney and Melbourne the caps could also be changed so some banks had higher speed limits than others.