Bank of Queensland has labelled the current property market as “extremely weak”, claiming it could face 18 more months of hardship.
The bank’s chief risk officer Peter Deans told a news website several factors were to blame, including “a lack of business and consumer confidence.”
"Interest rate cuts really haven't translated into an improvement in confidence. Added to that, the high exchange rate, the ongoing difficulties in the tourism and hospitality sectors (mean) difficult times for those outside the mining sector,'' he said.
His comments come after rating agency Moody’s cut the bank’s creditworthiness by one notch, amid concerns over loans deteriorating in numbers.