A survey of more than 2000 Australian mortgage holders, conducted by global intelligence provider RFI Group on behalf of specialty finance company Liberty, found that many consumers do not understand the criteria traditional banks use to assess a loan application. Nearly half of the respondents (41 per cent) stated they "lacked full awareness", and 14 per cent had no awareness at all. One in three (34 per cent) believed they wouldn't be approved for a loan if they applied today. The survey also found more than one in four Australian mortgage holders (26 per cent) believe they may require a lender outside the Big Four in the future. Westpac Bank will find it hard to justify lending to new fossil fuel projects after it commits to running its business to support an economy that limits global warming to below 2 degrees, with a statement along those lines expected at its AGM today, the AFR suggests. The new pledge will take Westpac well beyond the "support" offered by the three other big Australian banks for the global 2 degrees target, currently being debated in climate talks in Paris. Regional banks will be able to reduce interest rates or earn higher returns on most home, business and personal loans under new rules proposed by the Basel Committee on Banking Supervision, the AFR reports. In a move that would provide a significant boost to the competitive dynamics of Australia's banking sector, the regional banks may be allowed to cut the amount of capital carried against a range of loans, which would boost their profitability, potentially allowing the regional banks to pay higher dividends or cut rates to expand market share against Australia's dominant big four banks.