The Commonwealth government will introduce a "responsible lending test" to the consumer credit code next year according to sources. Under the new rules, lenders.....
Westpac chief executive Gail Kelly has said that the era of strong profit growth for the banks is over while confirming that Westpac is on target to achieve a 10 per cent rise in profit to $3.8 billion for the current financial year. While recording a healthy increase of $160 million in cash earnings when comparing the interim result to the corresponding period 12 months ago, over the two most recent half years the result has only improved by $10 million. Revenue has grown by 12 per cent but the higher cost of funding resulting from the global credit crunch has held back significant increases in earnings. Ms Kelly tipped the string of recent rises is almost at an end and said that the Australian economy would experience a soft landing, avoiding a recession but with lower growth rates.
