'Brink of disaster', MP warns about loans Newcastle Herald 25 June 2018
The current banking environment is "ugly and evil" and consumers need to be protected from risky behaviour, independent MP Bob Katter has told parliament.
The veteran Queensland MP wants to separate retail commercial banking from riskier investment activities, a move he believes will protect Australians in times of depression and stop banks luring customers into buying other services.
Mr Katter suggested Australia was "sitting on the brink of disaster" as banks continue to offer loans to people who may not be able to make repayments, and called on institutions to be held responsible.
In Sydney, Newcastle and Wollongong the average house price is above $800,000 and yet the average Australian income after tax is around $50,000, he told parliament, questioning how those people could make repayments on a house.
"Does anyone seriously think that we are not sitting on the brink of disaster?" he said.
"Well the banks make money when you go broke and they sell the house out from under you. They don't lose money, they make money out of what has occurred. They should be held responsible."
Any legislation would tell the banks they are no longer in the market buying and selling, but their job was to loan to people who buy, sell, develop and invest.
Australian Associated Press (AAP)