Proposed APRA powers over non-bank lenders
By Michelle Chasser and Daniel Knight
The Australian Treasury has released for consultation, draft legislation which would give the Australian Prudential Regulatory Authority (APRA) prudential regulatory powers in relation to non-bank lenders including marketplace lenders. Non-bank lenders are corporations:
- whose business activities in Australia include the provision of finance such as:
- the lending of money;
- carrying out activities, whether directly or indirectly (such as through a trust), which result in the funding or originating of loans;
- letting or hire-purchase of goods; or
- acquiring debts dues to another person, bills of exchange or promissory notes; and
- with more than $50 million in loan principal amounts outstanding or debts due to it resulting from transactions entered into in the course of providing finance.