Australian regulator will not appeal Westpac lending case

An office building with Westpac's logo is seen in the Central Business District of Sydney, Australia

Australia’s corporate watchdog said on Wednesday it would not appeal against the Federal Court’s dismissal of its lawsuit accusing Westpac Banking Corp (WBC.AX) of not adhering to responsible lending obligations in approving mortgages.

“ASIC is mindful of the impact of the additional time required to resolve this matter in the current challenging economic circumstances,” the Australian Securities and Investments Commission said in a statement.

Last month, the court dismissed the lawsuit accusing Australia’s second largest lender of having approved mortgages without adequate credit checks.

It was Australian banking’s most prominent lawsuit after a Royal Commission inquiry found evidence of widespread misconduct in the financial sector in 2018 and 2019.

The regulator said it would review its updated regulatory guidance for credit licensing.

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