Banks may make it harder for consumers to get car loans, credit cards and personal loans under proposed rules from the corporate regulator.

After the royal commission put bank lending practices under the microscope, adding to pressure from regulators, the Australian Securities and Investments Commission last week issued a consultation paper on responsible lending, which reiterated some of its concerns about how customers' living expenses were assessed by banks.

Credit card assessments could be tightened as a result of ASIC's plan to update responsible lending guidance, analysts said. Credit:Mark Lennihan

In response to the paper, which will be followed by consultation with banks over the coming months, some banking analysts predicted certain types of consumer credit could be tightened.

At the same time, however, they said there could be benefits for the big banks, because the new rules are expected to force smaller non-bank lenders to tighten their processes, similar to what banks have already done over recent years.