The banking royal commission has exposed senior management, boards and regulators to unprecedented scrutiny — and the problems don’t end with the finance sector, writes Michael Gill.

At the request of the Royal Commission, this information note identifies reforms affecting SME lending introduced since 2007. The reforms outlined in this information note primarily concern reforms that are of relevance to small businesses, rather than medium sized enterprises, which are treated consistently with larger enterprises within the regulatory framework.

The scope of this paper is limited to small business credit in the form of loans, both secured and unsecured. It does not consider other banking facilities, financial products or financial services. It is intended to provide an overview of the relevant issues, and does not purport to be comprehensive.

This report is comprehensive and contains a large number of findings and recommendations. Its overarching conclusion is that "CBA’s continued financial success dulled the senses of the institution," particularly in relation to the management of non-financial risks.

This paper responds to a request from the Royal Commission for background on the capital prudential framework applying to the banking industry, with particular regard to the current and proposed treatment of residential mortgage lending and lending for small and medium-sized enterprises.