The Banking Royal Commission is focusing on the risks taken by family members who go guarantor for a relative.

The third-round of the commission is examining the strain placed on a family when a small business goes bust, and the bank demands its money back.

It’s found some operators have gone to the wall, even though it hasn’t missed repayments.

The people most affected are parents who put their house up as security for their children.

Ross Greenwood speaks with Banking and Finance Consumers Support Association President Denise Brailey for details.

“I think it should’ve been properly investigated right from the beginning because it was just too continental that suddenly all these loans were impaired.”

Listen to the full interview below