The Residential Mortgage (De)regulation–Innovation nexus

The stance of Australia’s central authorities with respect to residential mortgage innovation appears different from many of our international counterparts. In this article we provide an interpretation of this policy stance, concluding that signals are arguably a more prominent feature of Australia’s policy environment than many of our overseas counterparts. In addition we also observe that whilst there is a strong link between innovation and (de)regulation, a healthy degree of competition appears to be necessary if a wider-set of consumers are to have access to these innovations.