Tuesday, May 5, 2020

APRA asks ME Bank for "please explain" for tapping mortgage redraw facilities during crisis; deputy chair Helen Rowell says $1.3b in super released in first week of emergency access

The Australian Prudential Regulation Authority says $1.3 billion has so far been released to anxious Australians who have raided their superannuation after the federal government changed hardship provisions during the pandemic. 

APRA deputy chair Helen Rowell says the superannuation sector is acting responsibly in the crisis, but warned the regulator will take action against super funds that are holding back on urgent payouts to struggling Australians. 

Mrs Rowell tells ABC's Peter Ryan that APRA has asked the industry super backed M-E Bank for a "please explain" after the boutique bank tapped the redraw facility in some mortgages at a time of crisis.



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