Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Australian Prudential Regulation Authority said the current serviceability buffer for home loans was appropriate given the potential for a deterioration in domestic and global economic conditions.
In an information paper released on Monday, APRA maintained the serviceability buffer at 3% and the kept the countercyclical capital buffer at 1% of risk weighted assets.
“APRA closely monitors financial risks, and we see a high degree of uncertainty in the broader outlook, globally and domestically. On the one hand, there are signs of a deterioration in conditions, including falling asset prices and the potential for pockets of stress. On the other hand, lending standards are broadly sound, loan arrears remain low and the banking system is well capitalised," said APRA chair John Lonsdale.
“These settings, however, are not set in stone. The events of recent years have emphasised that conditions can change rapidly. We continue to closely monitor the outlook for credit growth, asset prices, lending conditions and financial resilience. Should risks to financial stability change, APRA will adjust its macroprudential policy settings accordingly after careful consideration and consultation with other agencies on the Council of Financial Regulators,” Mr Lonsdale said.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.