We asked five experts: will the banking royal commission push down property prices?

The financial institutions fronting the Financial Services Royal Commission are also the ones controlling mortgages, so will an expose of their dealings push property prices down? Writes...

Jenni Henderson, The Conversation 

The Financial Services Royal Commission has exposed some irresponsible lending by Australia’s biggest banks.

Some of the revelations from the commission have affected certain banks’ share prices but not their profits.

The question is whether the information brought to light by the commission will further push down property prices?

Three out of five experts said yes

Here are their detailed responses:

Disclosures: 

Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In  order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute’s activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website.

Cameron Murray is a senior economist at The Australia Institute and member of the Sustainable Australia political party.

Jenni Henderson, Section Editor: Business + Economy, The Conversation

This article was originally published on The Conversation. Read the original article.

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