Reserve Bank of Australia Financial Stability Review
Quick Headlines via Reuters:
- Financial system in good shape, bank resilience has increased significantly
- Important banks do not increase risk taking, weaken lending standards or culture
- Overall household resilience remains sound, supported by jobs growth and low rates
- Tighter regulations have moderated housing market, seen large fall in high lvr loans
- Financial risks have shifted from housing to residential development, commercial, resource sectors
- Risks growing for apartment projects should Asian demand wane, especially in Melbourne and Brisbane
- Investor demand from China, Asia pushing up commercial prices sharply, compressing yields
- Foreign investors accounted for a record 40 pct of commercial purchases in 2015
Commercial property stress concentrated in Perth & Brisbane, Melbourne & Sydney much stronger - Business finances generally in good shape, but signs of stress in resources sector
- Financial health of resources sector has deteriorated significantly over past 6 months
- Australian bank exposure to resource sector is small, but some Asian banks vulnerable
- Risks more prominent in Australia bank exposure to New Zealand housing, dairy sectors
The full text is here: Financial Stability Review
