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RBA warns the banks ‘don’t be stingy’

The Reserve Bank of Australia has warned banks to loosen up their lending practices when approving home loan applications.

Following the Royal Commission banks have become cautious and their frontline lending staff are knocking back home loan applications which usually would get approved.

Speaking at a function in Perth, Reserve Bank assistant governor Michelle Bullock said, “we are out there telling banks, and asking banks to tell their frontline staff, don’t be too stingy here.”

Loans.com.au CFO James Austin tells Ross Greenwood staff need to be more consistent when granting credit.

“It’s a lack of consistency in a credit application of the policy, it’s not the policy itself.

“Frontline lenders are human like everybody else and they’ve seen the difficult times, they’ve seen the criticisms and it’s a natural reaction.”

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