RBA Financial Stability Review:
- Says important bank lending standards in mortgage market do not decline
- Have not seen any material loosening in lending standards so far
- Regulators monitoring array of information to ensure mortgage risks do not grow
- As a result, some banks likely to tighten standards and slow investor home lending
- Banks' asset risks in commercial property sector have been growing
- Foreign demand, global search for yield driving up prices in commercial, apartment markets
- Australian financial system strong, bank assets improving and profits robust
- Profile of new lending suggests households well placed to service their loans
- Interest only loans an area of concern, ASIC currently reviewing standards
- Measures of overall household financial stress remain low
Headlines via Reuters (post time headline via Bloomberg)
The review is published twice a year
Full text:Financial Stability Review
