The Australian Prudential Regulation Authority’s (APRA) will continue to monitor the activities of Australian lenders until the end of the year.
Speaking at a Senate Economics Legislation Committee yesterday, APRA chairman Wayne Byres said the regulator wants to ensure regulators are taking heed of its calls to rein in lending to investors.
“With our encouragement, we've seen the removal of some lending practices which were, to be frank, less than prudent, and some scaling back in growth aspirations to more moderate levels,” Mr Byers said.
“The effects of this are only now beginning to be observed, and will take time to fully flow through. To that end, we will be watching carefully over the remainder of the year to make sure that revised policies and plans are genuinely being put into effect and maintained by individual lenders.”
Mr Byers defended APRA’s recent actions, describing them as “bread and butter supervision” as the regulator looks to keep Australian lenders form exposing themselves to high levels of risk.
“Our success will not be judged by changes in house prices. They are not within our mandate, and in any event there are too many influences on house prices that are beyond our control,” he said.
“Our goal is simpler: that, regardless of the path of house prices, interest rates and broader economic activity, the loan books of Australian ADIs are built on solid foundations from sound lending standards.”
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