Westpac Australia has been hit was a A$35 million ($38.3m) fine by the Australian Securities and Investments Commission (ASIC) after they admitted to wrongly assessing people's ability to repay mortgages.
If approved by the Federal Court, the fine will be the largest civil penalty awarded under the National Credit Act, according to ABC.
Australia's second-biggest lender admitted to either failing to collect the necessary customer data or incorrectly calculating customers' ability to repay loans in relation to about 100,000 home loans from 2011 to 2015, the ASIC said.
James Shipton, ASIC chairman, called the decision a positive outcome which sends a strong message that noncompliance with the responsible lending obligations will not be tolerated.
"This is a very positive outcome and sends a strong regulatory message to industry that noncompliance with the responsible lending obligations will not be tolerated," Shipton said in a statement.
