Accordingly, we have proposed a ban on prepayment penalties in circumstances of a high degree of risk to the consumer, and we are also addressing transparency concerns. The proposed rule would ban prepayment penalties where they are most likely to prevent a consumer from refinancing a loan that has a particularly burdensome payment.
This alleviated funding pressures in the banking system and met the increase in precautionary demand for liquidity. (The RBA undertook similar actions in the financial crisis in 2007–08. [15] ) Through March and April, the RBA increased the size of its daily operations and provided regular three and six-month terms in its repo operations to meet this demand for liquidity.