off-the-wire

Australia banking regulator reaffirms current home lending standards

Kitco Media
By Reuters
Published:
Updated:
Reuters
SYDNEY, Feb 27 (Reuters) - Australia's banking regulator on Monday said a 3% serviceability buffer for residential mortgage lending remained appropriate amid a deterioration in domestic and global economic conditions. The Australian Prudential Regulation Authority (APRA) said
there were signs of falling asset prices and potential for "pockets of stress" but the current lending standards were sound and the country's banking system was well capitalised. "APRA's view is that the 3 percent level remains prudent given the potential for further interest rate rises, high inflation and risks in the labour market," Chair John Lonsdale said in a statement.



(Reporting by Renju Jose Editing by Chris Reese)

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