Reserve Bank of Australia Financial Stability Review for October 2017
The FSR is published twice a year
Headlines via Reuters:
- Australia's financial system remains strong and resilient
- RBA says main risks come from rising household debt amid low rates and weak income growth
- Higher rates, falls in income could see some highly indebted households struggle to service debt
- Tighter lending rules have curbed investor, interest-only loans
- Sees signs of easing conditions in housing markets in Sydney and Melbourne
- Large pipeline of new apartments pressuring prices in Brisbane, parts of Melbourne
- Few signs as yet of settlement problems on apartments, but watching carefully
- Banks profitable, well capitalised, bad and doubtful debts around historic lows
- Regulators seeking to strengthen bank accountability, risk controls given recent lapses
- Local banks pulling back on commercial loans, Asian bank lending still growing strongly
- Little growth in shadow banking as yet, but an area to watch
- Risk remain elevated in china given high levels of debt, opaque borrowing
- Concerns excessive risk taking in global financial markets risks a "disruptive correction"
I don't see anything of much unexpected nor surprising in those headlines. AUD/USD barely changed
Link to the FSR in full: Financial Stability Review