Financial Regulation and Financial
Institutions
The Australian government has shut down the economy in response
to COVID19, resulting in millions of Australian being unemployed
and under-employed.
Many of these newly unemployed have home mortgages with banks,
which now face growing (interest rate, market, credit,
liquidity, operational) risk from such customers who
are no longer able to meet their repayments. The RBA has also
mandated new financial regulation that requires banks to freeze
mortgage repayments for up to six months. Holding...