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Controversial new lending rules designed to protect borrowers from high-cost loans and unaffordable debt have been roundly criticised for forcing banks to take an overly zealous approach to consumer lending.
Home buyers report being turned down for mortgages with banks nitpicking over discretionary spending, while new data suggests businesses are finding it harder to access credit.
The Commerce and Consumer Affairs Minister Dr David Clark has ordered a review of how the new rules are being implemented, with terms of reference issued earlier this week.
Yesterday he met with the heads of the major banks to hear their concerns.