Regulator says bank lending standards are falling

Australian Prudential Regulation Authority chairman John Laker says he has seen signs of loosening bank lending.

Dr Laker said the external audit to review banking lending standards, launched by the regulator in July, was focused on how banks determine whether customers can repay loans.

The comments come as economists debate whether low interest rates could lead to a property bubble in the local market. Dr Laker said he saw no signs of such an issue.

Source: Australian Financial Review