APRA chairman Wayne Byres said a request for banks to make sure they can measure loans being made to high-risk borrowers points to additional tools, such as debt-to-income limits, that the regulator could deploy if it grows more concerned about rising mortgage debt.
In an information paper published last Thursday, the Australian Prudential Regulation Authority set out different “macroprudential” responses to limit bank lending for housing.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au