SYDNEY, April 3 Australia's corporate watchdog
on Monday said it was launching a new round of industry
surveillance to ensure banks and brokers were not recommending
overly expensive interest-only loans to customers.
The move by the Australian Securities and Investments
Commission follows steps announced last week by the banking
watchdog, the Australian Prudential Regulation Authority, to
tighten rules on interest-only loans.
"ASIC will shortly commence a surveillance to identify
lenders and mortgage brokers who are recommending high numbers
of more expensive interest-only loans," ASIC said.
The regulator also said that eight major lenders will
provide remediation to consumers who suffer financial difficulty
as a result of shortcomings in past lending practices.
(Reporting by Wayne Cole; Editing by Richard Pullin)