RBA Keeping Close Eye on Lending Standards
Australia’s central bank is keeping a close eye on the build up of credits to housing investors and is still talking to the financial regulator over what can be done to tighten lending standards, the head of the Reserve Bank said on Thursday.
Answering a question after giving a speech titled “Issues in payments systems”, Glenn Stevens also said lending standards need to be closely watched at a time when house prices are rising quickly and lending competition is increasing.
“As we said, we’re in discussions with APRA (Australian Prudential Regulation Authority) about whether there is more to be done to reinforce our lending standards and those discussions are continuing and when there is something to be said, it’ll be said all in good time,” he said.
Stevens stressed that home owners and first home buyers were not the targets, but rather investors in the housing market.
Source: Reuters- RBA Keeping Close Eye on Lending Standards
