The Reserve Bank of Australia's Financial Stability Review is published twice a year
Link to the full text is here: Financial Stability Review
Headlines via Reuters:
- housing price growth being watched closely by regulators
- important that banks do not take excessive risks in low rate environment
- lending standards have not yet deteriorated, remain robust
- rising prices an affordability challenge for low income households
- Australian banks in strong financial position coming out of pandemic
- banks have abundant liquidity and funding, adequate provisions for bad loans
- most households in good position to service debt with low rates, large liquidity buffers
- some households, firms face rising financial stress as govt support measures unwind
- banks closely monitoring their exposure to office, retail property sectors
- committed liquidity facility for banks may no longer be needed given rise in bond issuance
- rising asset prices a channel through which accommodative monetary policy works
- many asset prices are high globally, but still consistent with very low interest rates
- cyber attacks growing risk for financial stability which banks need to guard against
- increasingly likely that large financial institutions will be impacted by cyber attacks
- banks, insurers need to act early to address financial risk from climate change
- banks set to draw down most of TFF funds, face largest ever refinancing task in 2023/24
Nothing in that lot to indicate the RBA is concerned on stability for now.
