Banks might have to deal with a fresh raft of disclosure obligations if the musings of one cabinet minister became common practice.
Financial Services Minister Bill Shorten last night called on banks to reveal how much they lend to people in different areas of capital cities - and the interest rates they charge. The Herald Sun reported on Shorten's speech.
Shorten proposed that banks be compelled to show which areas commonly missed out on loans.
Banks would have to reveal detailed customer satisfaction data, where they have branches and how many people they employ in different postcodes, the newspaper reported.
The proposals are similar to the principles in the Community Reinvestment Act in the United States, a law that aims to reduce discrimination in lending by broadly matching the availability of credit in districts with plenty of deposits. The aim of the law is to ensure a flow of credit to poor localities.
Shorten said he did not believe Australia needed legislation, but said there was room for more transparency.
- Highlighter proposed for lending red lines
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26 July 2012 6:55am
