Responsible Lending

The banking industry supports robust and consistent responsible lending standards across the economy. This is to support appropriate access to credit for customers to support their long-term prosperity and growth.

These standards are set out in the National Consumer Credit Protection Act 2009, regulatory guidance issued by ASIC and APRA as well as the Banking Code of Practice. The law requires banks when lending to assess that a loan is “not unsuitable”, based on whether a customer can repay “without substantial hardship” and meets a customer’s “requirements and objectives”.

ABA members take their responsible lending obligations seriously to ensure they are doing the right thing by customers.