Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I think Senator Sherry would know that the non-bank lending sector, given that they do not take deposits, are not regulated in the same fashion as other parts of the banking system. That is a fact of life. Senator Sherry knows that and, of course, the Treasurer knows that. What concerns me is the extent to which Senator Sherry is causing alarm to borrowers from non-bank financial lenders by suggesting that there is any difficulty with them. There is no risk whatsoever to borrowers from non-financial lenders. They do have full mortgage insurance so it is wrong for Senator Sherry to suggest in this place, at least by implication, that there is any risk to them. I condemn Senator Sherry for the extent to which he is causing concern to borrowers from those sorts of lenders. They do not bear any risk because they are insured. To the extent that they are borrowing from others and the price of their credit goes up, there may be an impact. But there is no question of the financial stability or surety of the loans that people have taken out from those non-bank financial lenders, and nor should Senator Sherry be causing concern.