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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