Low risk lending does not mean low house prices

The Australian Prudential and Regulatory Authority chair, Wayne Byres, told a Senate committee that “We will be watching [lenders] carefully over the remainder of the year” to ensure they do not make risky loans to property investors.

Byers said although APRA’s policies on limiting risky lending have been developed as house prices have risen rapidly, he is not aiming to lower prices.

House prices are not within our mandate said Byers.

Source: Banking Day