Reserve Bank of Australia Deputy Governor Michelle Bullock has said in a speech scheduled Wednesday that they are “observing closely the evolution of the housing and credit market“.
Additional comments
if it is continually evaluating whether macroprudential tightening is necessary.
Macroprudential standards should be risk-driven derivatives of highly indebted borrowers.
Include tools that address loan serviceability and the amount of credit that can be obtained.
The risks for the financial stability of the home could be growing.
The recent strength of the housing market is positive for the economy.
But mortgage loan growth above income growth it could lead to vulnerabilities.
Evidence suggests that banks have maintained lending standards on mortgages.
Regulators closely monitor loans with high debt-to-income ratios.
Australian banks have a stronger capital position than during the global financial crisis.
In general, the increase in household debt in the last 30 years is not a cause for alarm.
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