The fine-tuning of Australian financial regulations resumes January 2010 with the initiation of the new national credit licensing system regime. The new regime is intended to bring the Australian credit market more in line with international standards, by requiring brokers and lenders to determine whether borrowers can afford to repay a loan before writing it.

“My only wish is that this had occurred earlier,” said Assistant Treasurer Nick Sherry, speaking of the new regime.

By ensuring that loans are suitable for financial customers, brokers and lenders can assist in avoiding such catastrophes as Storm Financial, which was placed in liquidation March 2009 with debts totalling more than AU$100 million, taking hundreds of Queensland private investors’ life savings and family homes with them.

Source: Yahoo Finance :  Banks to ensure you can repay your debts