Reserve Bank of Australia Financial Stability Review.
Headlines via Reuters
- Australia not immune to global financial shocks
- But Australian banks well capitalised, profitable and highly liquid
- APRA has stepped up oversight of domestic institutions, considering lessons for regulations
- Global financial stability risks have increased, likely to see tightening of credit
- Regulators will need to tighten rules, protect from "digital" runs on banks
- Financial system also at risk if inflation stays high, central banks keep tightening
- Most Australian households, firms well placed to weather higher rates, inflation
- But some already in stress and squeeze on budgets likely to last for some time
- Stress seen in domestic construction sector, commercial lending
- Domestic banks well placed to absorb any increase in non-performing loans
- Lenders provisioning for loan arrears to rise, though from very low levels
- Mortgages in negative equity make up only 1% of total loans
- Keeping watching brief on cyber attacks, climate change, geopolitical stress
Full text:
Read the full Financial Stability Review
