RBA's Bullock: Encouraging lenders not to tighten too much
|While Australia's falling home prices and high levels of household debt are not yet a threat to financial stability, major lenders, however, should avoid going too far in curbing the supply of credit to the economy, Reserve Bank of Australia (RBA) Assistant Governor Michele Bullock said on Wednesday.
Key quotes (Source: Reuters)
From a financial stability perspective, prudent lending standards are a good thing. But there needs to be a balance.
The regulators are not proposing any further tightening in lending standards.
RBA is urging banks to lossen lending standards a bit.
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