With interest rates at record lows, banks and other lenders have been warned by the Reserve Bank and the Australian Prudential Regulation Authority not to loosen their lending standards to win customers.
The RBA said “it was especially important that banks maintained prudent lending standards.”
APRA chairman John Laker said: “There is broader risk that institutions will come under pressure to lower their lending standards to either protect market share or acquire market share.”
The International Monetary Fund has called for greater lending restrictions.
Source: Australian Financial Review
