This is re Australia, but it is going to be indicative of a global trend amongst lenders, of that you can count on and thus is widely applicable.
- Westpac tightening borrowing capacity for self-employed customers and people living in areas that are dependent on tourism
- to reduce risks sparked by the coronavirus pandemic
- reducing loan-to-valuation (LVR) ratio to self-employed borrowers (for new loans)
- and also reducing loan-to-valuation (LVR) ratio to new loans in postcodes in tourism-heavy areas
Credit provision is a contributor to economic growth, less of it will reduce growth at the margin. "Yeah but what if other borrowers take up the slack???" is a separate argument and not applicable to 'at the margin', K?
