NAB boss calls for more regulation

The head of Australian operations at National Australia Bank, Ahmed Fahour, has said that a lack of regulation of non-bank and ‘fringe' financiers has left Australia open to a US-style sub-prime mortgage crisis. Mr Fahour said that the majority of sub-prime loans are not done by banks but by non-regulated entities. He also said that mortgage brokers, which write 40 per cent of all new housing loans, should come under greater scrutiny. Consumers can be advised to switch loan products when there is no benefit for them, although it generates commissions for brokers said Mr Fahour.