2017-07-17 — cnbc.com
The Australian government is seeking to broaden the powers of the country's prudential regulator to include non-bank lenders as concerns about financial stability take center stage amid bubble risks in the nation's sizzling property market.
Australia's four biggest banks have already cut back on home loans in recent months and pulled away from institutional lending to real estate developers, as regulators force them to keep aside more capital and slow lending to speculative property investors.
Non-bank lenders have been quick to pick up the slack, with their loan-books expanding at a much faster clip than the banking sector's 6.5 percent overall credit growth. This development is stoking concerns for authorities as a combination of record-high property prices and stratospheric household debt sit uncomfortably with slow wages growth.
Comments: Be the first to add a comment