The architect of a crucial safeguard designed to protect the banking system from the risk of a widespread mortgage crisis says it should never have been abolished by the financial regulator.
As the head of credit risk at the Australian Prudential Regulation Authority (APRA), Glenn Homan oversaw the introduction of a serviceability "floor" in 2014, as part of the regulator's attempt to rein in risky lending that was fuelling a runaway housing market.
