Banks Should Not Let Lending Practices Slip: RBA
The Reserve Bank of Australia (RBA) has warned banks not to let lending standards fall as the financial sector could be shaken from any debt blow out under a housing price correction.
In its biannual financial stability review (pdf), the central bank stressed the importance of the financial sector avoiding excessive risk-taking in the form of looser lending standards or relaxation of internal limits.
“Even if lenders do not weaken their own settings, increased risk-taking by optimistic borrowers could see a deterioration in the average quality of new lending,” the review said. “This would weaken the resilience of businesses and households, and so the financial system, to future shocks.”
Reiterates commitment to keep policy lower for longer Strikes a cautious note on housing market as prices skyrocket Bank to release Financial Stability Review on Friday (Adds economist quotes, A$)
SYDNEY, April 6 (Reuters) - Australia’s central bank left interest rates at an all-time low on Tuesday in a widely expected decision but cautioned it would “carefully” monitor trends in property debt as the housing market boomed.
The Reserve Bank of Australia (RBA) also reiterated its commitment to keep policy accommodative for as long as is needed to pull down unemployment and push inflation higher, signalling the cash rate would remain at 0.1% until at least 2024.
The dollar steadied on Tuesday after posting its biggest drop in three weeks during the previous session as investors consolidated positions following a recent rally.
The dollar steadied on Tuesday after posting its biggest drop in three weeks during the previous session as investors consolidated positions following a recent rally.
COVID has changed you, right? You use less cash, perhaps a lot less.
In the first two months of the pandemic, cash withdrawals from automatic teller machines halved. Even now they are down 20%.
So little-used were the main notes traditionally used for small transactions – $5 and $10 notes – that authorities stopped issuing them in the first half of 2020.
The amount of cash banked by retailers dropped by a third between February and May, and according to a new Reserve Bank study is still much lower than it was.
Only 23% of Australians surveyed in October said they had used cash for their most recent face-to-face purchase, down from more than 30% before.