(2 October 2018, AFR, p16, by James Frost)
‘The risk of a credit crunch has risen sharply after Commissioner Kenneth Hayne floated the prospect of stricter expense verification for borrowers and new obligations for lenders to small to medium businesses. UBS analyst Jonathan Mott wrote to clients on Saturday morning and warned them to expect a prolonged period of crimped bank profits following the release of the banking royal commission’s interim report on Friday afternoon. “The risk of the current Credit Squeeze turning into a Credit Crunch is real and is rising, in our view. We believe the Australian banking sector is facing a period of substantial and sustained earnings pressure which is likely to last several years” Mr Mott said.’
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