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RBA Financial Stability Review: Financiial system in good shape

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Reserve Bank of Australia Financial Stability Review is out, noting that the financiial system in good shape.

    Headlines

    Financial system in good shape, bank resilience has increased significantly

    Important banks do not increase risk taking, weaken lending standards or culture

    Overall household resilience remains sound, supported by jobs growth and low rates

    Tighter regulations have moderated housing market, seen large fall in high lvr loans

    Financial risks have shifted from housing to residential development, commercial, resource sectors

    Risks growing for apartment projects should Asian demand wane, esp in Melbourne and Brisbane

    Investor demand from china, Asia pushing up commercial prices sharply, compressing yields

    Foreign investors accounted for a record 40 pct of commercial purchases in 2015

    Commercial property stress concentrated in Perth & Brisbane, Melbourne & Sydney much stronger

    Business finances generally in good shape, but signs of stress in resources sector

    Financial health of resources sector has deteriorated significantly over past 6 months

    Australian bank exposure to resource sector is small, but some Asian banks vulnerable

    Risks more prominent in Australia bank exposure to new Zealand housing, dairy sectors
    For more information, read our latest forex news.
     

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