Submission to Financial System Inquiry
Download Document| Date Published | 2014 |
| Version | |
| Primary Author | MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA |
| Other Authors | |
| Theme | Funding Housing Finance |
| Country | Australia |
Abstract
MFAA subscribes to the principle that governments should not intervene in markets unless it can be demonstrated that that there is an imbalance in competition which regulatory measures would correct. Under this principle, the Canadian government introduced its mortgage-backed-securities regime in the 1980s and it is still operating successfully in 2014. MFAA submits that the competition principles governing regulation in the lending sector through which all proposed regulation should be filtered should be that regulation should only be introduced if it enhances competition or it is competitively neutral regulation should be principles based rather than attempt to micro-manage business.