More on the Moody’s downgrade of Australia’s largest banks - has focused attention on mortgage risks

Mike had the headlines overnight: Moody's downgrades Australia's main banks

And I had a wee snippet or two more earlier: brings Moody's in line with the Standard & Poor's ratings

Bloomberg have a good piece up with background, more detail, risks, and what else is still to come to impact the banks:

• announcement in coming days from the Australian Prudential Regulatory Authority, which is due to say whether it will require the banks to hold more capital against their mortgage books as part of a wider update on capital requirements. Despite recent steps to rein in their exposure to the riskier areas of mortgage lending, the lenders still sit on by far the largest property lending books of any banks in the world, measured as a proportion of total loans.