RBA's Bullock says risks to financial stability from housing could be growing

Author: Eamonn Sheridan | Category: Central Banks

Reserve Bank of Australia - Speech by Michele Bullock, Assistant Governor (Financial System)

  • the topic is The Housing Market and Financial Stability
 Headlines via Reuters 

  •  says watching developments in housing market, credit very closely
  • continually assessing whether any need for macro-prudential tightening
  • macro-pru rules should be targeted at risks arising from highly indebted borrowers
  • include tools that address serviceability of loans, amount of credit that can be obtained
  • says risks to financial stability from housing could be growing
  • recent housing market strength is positive for economy
  • but growth in home loans above income growth could lead to vulnerabilities
  • evidence suggests banks have maintained lending standards on mortgages
  • regulators closely monitoring lending at high debt to income ratios
  • says Australian banks have stronger capital position than during GFC
  • says, overall, rise in household debt over past 30 years is no cause for alarm

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