"Balanced scorecards", of the kind countenanced by the Australian Prudential Regulation Authority, are inherently unbalanced.
Combined, APRA and the Reserve Bank are about to give households on $150,000 up to $120,000 more borrowing power.
Under cover of a speech from the Reserve Bank governor, the Prudential Regulation Authority has moved to make it 10% easier to borrow.
The government has agreed to create an independently-chaired body to report on the performance of ASIC and APRA, but it hasn't said its reports will be made public.
Getting better behaved banks isn't difficult. Here are three places to start.
Flaws in the ABC Act set up conflict and allow the government to pressure it.
In choosing not to impose restrictions on bonuses and commissions, the government left untouched the incentives for inappropriate financial advice and lending decisions.
A whole bunch of folks are on the wire, and if their housing payments go up they are going to struggle.
All eyes will be on how ASIC and APRA respond to the findings of the banking royal commission. Will they be defensive about past mistakes, or move forward with tighter regulations?
The Commonwealth Bank has been given responsibility to fix its own management mess. Regulators could have done a lot more.
Westacott is on the frontline in what has become the toughest of gigs, given the shocking disclosures, and subsequent fallout, in the financial sector.
ASIC and APRA don't lack power to sack bank directors. They the lack the willpower to do so.
If we do escape the interest only debacle unscathed it will be pure, dumb luck, not a consequence of good design or sound regulation.
The Financial Services Royal Commission can ask the banks for the material it wants, in the form it wants.
Our financial regulators ASIC and APRA need a board of oversight, similar to what the UK has, to keep them in check.
Research shows that cash bonuses are responsible for many recent financial scandals. The alternative isn't that great either.
Even though the Prime Minister and heads of the big four banks argue costly political uncertainty is the reason for the royal commission, experts argue the banks' behaviour itself is the real cost.
Parliamentary hearings reveal a lot of confusion between government, regulators and industry around banking regulation. This needs to be fixed.
While the government hopes its new regulation will rein in the banks, it's unlikely to do so.
The new banking regulations undermine the existing system, confusing regulators and achieving very little.