Increased borrower debt is still no cause for alarm – CBA

“It is an area of ​​major focus for us, as it always is, and I am aware of one of the many public comments at this time. … We always make sure we maintain a balanced and responsible position regarding how and where we lend to clients, ”Sullivan said.

Earlier this month, the Australian Prudential Regulation Authority warned that many borrowers were taking on higher levels of debt. However, the regulator stopped short of saying that macroprudential measures were required to curb the housing market. The australian reported.

“The issue that worries at the moment is that there is an increase in loans from debt to income, but it is offset by a series of other metrics that are going in a more positive direction,” said the APRA president. Wayne byres said. “Credit growth is picking up. In the most recent quarter, the risk metrics we analyzed are kind of a mixed picture: Interest-only loans have gone down as a portion of new loans, high LVR loans have gone down. “

Brian Johnson, an analyst at Jeffries, pointed to APRA data that showed the share of loans issued at a ratio of more than six times the borrower’s income increased to 21.9% in the June quarter. Johnson said The australian that the increase “could pose risks” when the Reserve Bank of Australia begins raising rates in 2024.

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