Macroprudential PressureAPRA is currently undergoing a close review of bank lending practices with a particular focus on lending practices to investors.Investment loans for existing homes have grown over the past 15 years, and the national banking regulator will be taking a close look at its future growth.APRA is closely scrutinising the capital holding percentages of the lenders, in particular the practices of the big four banks. Other areas of interest include any lending results which are showing greater than 10 per cent growth in investment loans.The RDC has argued in the media that robust regulation is absolutely necessary but any adverse impacts for homebuyers from a tightening of regulations must be mitigated. The RDC will follow up late 2014 meetings with APRA to get an update on the review.
Home Property Australia Macroprudential Pressure