Arrears/performance/credit quality. (251 items)

Developer credit strife agitates regulators

Compromised credit conditions facing property developers and their customers (often investors) form one nexus of the Reserve Bank of Australia's half-yearly Financial Stability Review, one that extends the bothered messaging of financial regulators over recent weeks.While the FSR (released on Thursday) reports the rate of growth in credit from banks to property developers has waned, it sheds additional light on the backdrop to the macroprudential measures announced by APRA at the end of March. read more

Household insolvency adds to banking risks

Risks to financial stability "are primarily macroeconomic in nature, rather than direct risks to the stability of financial institutions", the Reserve Bank of Australia declares in its Financial Stability Review, released on Thursday.The April 2017 edition of this half-yearly report shares public domain versions of analysis no doubt considered this year among the Council of Financial Regulators, culminating in APRA's outline of additional macroprudential measures at the end of March.Around one-third of borrowers have either no accrued buffer or a buffer of less than one month's repayments, the RBA said. read more

APRA imprint an elusive force in Sydney and Melbourne

Improved clearance rates over the weekend point to business as usual in the property market.It's one reason APRA's latest turn of the vice on banks' loans to property investors is "unlikely to substantially slow the increases in dwelling values, particularly in Sydney and Melbourne," Cameron Kusher, head of research at CoreLogic believes.?Rather, investment fundamentals may, over time, leave their mark on the frothy property prices of Australia's two largest cities, the chief commentator for the influential research house believes. APRA's activism, in Kusher's view, only extends the list of factors at play."From an investor's rationale, surely the proposition for investment, particularly in Sydney and Melbourne is starting to weaken," Kusher wrote in a blog post yesterday."Housing markets are likely approaching their peak," he said. read more

Affluent unperturbed by interest only vice

A socio-economic analysis of the users and abusers of the tax break that is negative gearing on residential investment property casts a doubtful spotlight on the effect APRA's tightening of the vice on interest-only loans may have on a sector pursued with gusto by many lenders.The affluence and wealth of the bulk of investment property borrowers will leave sceptics wondering how much bank caution toward this critical customer segment will dampen credit demand. read more

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