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.”
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
tweed heads south
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out