APRA warns banks again on lending standards

The Australian Prudential Regulation Authority said it believed that property prices were in decline, and warned banks against lowering their credit standards. APRA executive chairman John Laker said the housing market would not be the source of strong balance-sheet growth for banks that it had been in the last two or three years. Laker also said there was a “complacency” by banks in the credit assessment of business loans secured against property assets.