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APRA uncomfortable with housing 'exuberance'

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Australian Broker | 18 Sep 2013, 06:15 AM Agree 0
A surging housing market could be severely undercut if lenders lower their credit standards to woo consumers
  • ?? | 18 Sep 2013, 09:23 AM Agree 0
    If there is a bubble, it's only in certain states. Others are quite slow. Relax Lending standards?? Nothing has got easier with regard to rules of Banks, and we're still using affordability rates in the 7-8% range. Plus the lack of building activity is holding back the economy.
    So government bodies want the economy to pick up, concerned about the lack of homes being built; with the solution to make credit hard to get (which will stop homes being built).
  • Garry | 18 Sep 2013, 09:26 AM Agree 0
    How about these govenment departments mind their own business. Banks have been around a lot longer than these so called "experts" at APRA and the like. I'm positive they know what they are doing as the banks have survived though all manner of financial storms. This is just another person trying to big note himself. If APRA want to make the rules then they should lend money. At the moment as I see it is that its the banks money so it should be the banks rules - and not APRA.
  • Regional Broker | 18 Sep 2013, 10:00 AM Agree 0
    Nothing I have experienced in the last 6 month indicates that there is a lowering of the credit standards , quite the contrary , they are still prudent .
    APRA need to realise the Australian Banking system has withstood the GFC , The late 80"s and early 90's property crisis and so on they are without a doubt the best in the world , take the eyes off as they are not the overseas banks we seek doing rash and crazy things quite the opposite.
  • not so old broker | 18 Sep 2013, 10:11 AM Agree 0
    Actually Garry - it's not the bank's money. It belongs to the depositors or investors who lend to the banks (via whatever vehicle). Someone who the least knowledge of the GFC and global economics would know that "banks have been around a lot longer than these so called "experts"" and have still gone belly up. Ask Bankwest folk what happened to their owner. It is advice like this from APRA's so-called "experts" that saved Australia's bacon in the GFC and since. Get real!
  • Papery | 18 Sep 2013, 12:09 PM Agree 0 standards remain high & rightly so....the issue remains that the Aust ppty market is still too expensive with affordability, cost of living & overall confidence issues really holding credit growth back.
  • Garry | 18 Sep 2013, 12:40 PM Agree 0
    Not so old broker:
    There is a 179 yr difference between the inception of Banks in AUS and the inception of APRA in this country. Banks have been here for 196 yrs. Surely your are not insinuating that APRA are the result of the banks strength in AUS. I hope not because that really shows how flawed your thinking is.
    The AUS banks survived the GFC because of longevity & prudent business practices that were set up well before the GFC and not because of anything APRA came up with.
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