Banking royal commission could trigger a credit crunch: UBS

PHOTO: Moves to clean up wayward bank lending practices could trigger a credit crunch, according to UBS

The first round of the banking royal commission held nastier shocks than most expected and the regulatory response could land a significant blow to the economy and house prices, according to UBS economists.

For the past two weeks, Commissioner Kenneth Hayne and several seasoned barristers have questioned key bank executives over questionable lending and sales practices, with evidence of bribery, fraud, failure of internal controls, systemic issues and failures to report misconduct, all heard by the commission.

READ MORE VIA DOMAIN