Dr. Philip Lowe, president of the RBA (Australian Reserve Bank), warned that financial reforms should avoid stopping banks from lending, otherwise “the economy will suffer losses.” On the loan side, Dr. Lowe said that even if the bank lends responsibly, a certain percentage of borrowers will eventually fall into financial problems and fail to meet their obligations. Therefore, he hopes that the credit standard will return to normal. “A few years ago, the credit standard was too relaxed. We have already corrected this, but I started to worry a bit. Now the pendulum may swing too far in the other direction. I hope (The pendulum) is able to return to the center in time, so we are observing the ability of financial institutions to increase credit very carefully.” President Lowe’s remarks were his first substantive implied warning that politicians should not seek excessive Regulate loans because credit flows are an important source of economic growth.
A week ago, the federal government promised to inject $2 billion into the small business loan market. In this regard, Dr. Lowe said that the credit supply for small businesses has been “tightened” and needs to be observed “very cautiously”. He said: “I am currently paying special attention to providing credit for small businesses. Many bankers have told me that they are not sure how to apply ‘responsible lending’ to small business loans, so they are very conservative in some cases. practice.” Finance Minister Josh Frydenberg also said that the government does not want the stricter loan laws that some bank critics are pushing to lead to a credit crunch.