Michele Bullock, Assistant Governor (Financial System) speaking in Sydney
- Ready to do more on mortgage supervision if needed
- Says no doubt tighter APRA rules on lending did lessen some risks in housing market
- But early experience suggests effects may fade over time
- More willingness for regulators, policy makers to take action if they see risks building
- Says regulators globally more attuned to tail risks than before the GFC
Headlines via Reuters
Full text here: Has the Way We Look at Financial Stability Changed Since the Global Financial Crisis?
AUD a few tics lower, but not a lot of response.
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APRA is the Australian Prudential Regulation Authority. They introduced more macro-prudential measures to try to combat the surge in house prices. these had an impact for a time, but as noted by Bullock in her speech (points above) they do seem to be diminishing over time. Indeed, Sydney and Melbourne prices have gone an renewed surge.
Bullock indicating more may be done (more macroprudential measures)
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The GFC Bullock refers to is the global financial crisis. Not the Geelong Football Club.
