Any major reduction in lending will damage the economy and harm small businesses, he warned.
In a separate interview, Treasurer Josh Freudenberg repeated the prime minister, saying the government was inclined to adopt all the recommendations of the report, but would have to follow the weekend to study the wig after it received the findings on Friday. He added the pace of lending to a small business, while last year it was still below its historical average, "so we need to be very aware of the response to the report that we provide the free flow of credit."
Australian banks have recently boosted new loans to companies and potential home buyers – something that Mr. Morrison described as the "partly almost instinctive reaction" of the Royal Commission.
Data from the Reserve Bank, released on Thursday, show that the total housing debt that is remarkable for Australian borrowers has grown by 4.7 percent last year – down 6.3 percent from the previous year. The housing debt of investors grew by only 1.1 percent – reduced from double-digit growth rates in 2015.
"The easiest way to ensure that nobody is hurt is not to lend money to them, but if no one lends money, then everyone is hurt. So I think we need to be reasonable," Morrison said.
Large banks are concerned about the release of Commissioner Hayne's findings, so close to the federal election campaign, may cause an insensitive response from both sides of the policy, as the industry is deeply unpopular with the public, and the investigation is a major political issue after Labor first proposed it in early 2016.
"What the Royal Commission has so far discovered is what they call a non-frivolous misconduct," Morrison said. "So there are no problems with the stability of the system, but there are real problems with their behavior and I fully understand that. But we have to be careful. Be careful what you want."
The prime minister will go to the election elections in May as a risk to the economy.
"A popular populist is shortened to this and he is not guided by a sound financial policy," he said. "He was too strong, too fast to play the political card of all that. But as prime minister, who was the treasurer, I understand that if you undermine your financial system, which is one of the worst things you can do with economy ".
A Shadow Treasurer, Chris Bowen, said that only labor can be trusted to restore confidence in the financial sector.
"Labor also understands the critical importance that the banking sector plays in the heart of the Australian economy – but it must not serve as an alibi for bad banking behavior or crime," Bowen said.
Speaking during Blitz in the marginal areas around Brisbane, Mr Morrison also claims that Australia has survived the global financial crisis due to the strength of its financial system.
"The reason we survived was not because Kevin Rudd blew the budget, but because our banks continued to lend and none of them was subjected. In Britain and elsewhere, banks were falling everywhere – the United States was bloodshed."
Mr Morrison praised Justice Hayne to be aware of tightening lending to the market and clinging to the February deadline.
The hearing began in March and ended in November despite calls from the Laborers to extend the timeframe to allow a wider scope and more than 10,140 individuals and groups who filed submissions to give their opinion to the witness.
"I absolutely will refuse any suggestion that the Royal Commission has not considered any of these submissions," said Mr. Morrison. "They have it and I think that the labor proposal they do not have is offensive to the Royal Commission and to the work they've done."
Beven Shields is the Federal editor and chief of Canberra's office for the Sydney Morning Herald and the time.