2. Identify relevant issues relating to consumer lending by banks.

You should read at least two research papers on each issue, analyse their findings and summarise their results of these research after critical analysis of each paper. Every one is required to discuss at least five of the nine issues mentioned below.

b. Market for consumer lending Demand, supply, availability of credit.

How the consumer lending market has been affected by changes in employment, economic factors such as migration, changes in peoples perception and attitudes.

c. Current trends in consumer lending- in Australia or world wide- look at some of the data available with regulatory agencies like RBA, ASIC and others. Analyse the trends, up and down of consumer lending business. Examine the reasons for these changes.

d. Pricing Interest rates, fees, penalties.

How banks and service providers set interest rates and fees on various types of consumer loans. What are the reasons for charging penalties from the customers particularly for non repayment or default.

. Responsible lending - What is responsible lending. How banks and regulators have set up the responsible lending and fair trading. Find evidence of compliance or non-compliance of these guidelines by the banks, examine the reasons for bank behaviour and resulting consequences for banks and customers

f. Discuss the development of various products in consumer lending such as different credit cards, motor vehicle loans, home loans, personal loans or any other type of loans. How banks differentiate their products from each other and meet the competition. Discuss the innovation of new products.

g. How consumer credit loan applications are analysed by banks. Discuss different types of Credit scoring models used. Development issues in these models. What are the assumption and effectiveness of these models.

h. Frauds in consumer lending.

Many consumer lending providers including banks have perpetrated frauds on customers in the area of consumer lending. Discuss some of these frauds, the reasons behind these frauds and how these frauds were handled by regulators or courts.(For example, Royal Commission on Banking in Australia).

i. New forms of lending.

In the recent past some of the new avenues of consumer lending have been developed like fringe lending from cash converter, check loans, crowd funding etc. As a result, loan sharks have been able to target customers. Describe some of these new developments, their effect on customers and consumer lending