Quarterly Statement By The Council Of Financial Regulators - Sep 2021

"The Council of Financial Regulators (the Council) held its quarterly meeting on Friday, 24 September. Key items of discussion were the pandemic and recovery, housing market risks, recent reviews of payments system regulation and agencies' work on the financial risks associated with climate change. The Australian Treasurer and representatives of the Australian Competition and Consumer Commission attended for parts of the meeting."

• "The Council continued its dialogue on housing credit conditions and associated risks. Housing credit growth picked up over the first half of the year among both owner-occupiers and investors. The recent lockdowns have reduced transactions and new listings, but prices are still rising briskly in most markets. Commitments for new housing loans remain at a high level, suggesting that credit growth is likely to remain relatively strong. The Council is mindful that a period of credit growth materially outpacing growth in household income would add to the medium-term risks facing the economy, notwithstanding that lending standards remain sound. Against this background, the Council discussed possible macroprudential policy responses. APRA will continue to consult with the Council on the implementation of any particular measure. Over the next couple of months, APRA also plans to publish an information paper on its framework for implementing macroprudential policy."
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