Australia Regulator to Review Bank Lending as Credit Slows

Australia’s prudential regulator says it will monitor banks’ lending practices to ensure slowing credit growth does not translate into riskier loan underwriting. The move is a cautious supervisory step that could tighten lending standards, with moderate implications for bank credit risk and near-term sentiment.

Analysis

Australia’s prudential regulator says it will monitor banks’ lending practices to ensure slowing credit growth does not translate into riskier loan underwriting. The move is a cautious supervisory step that could tighten lending standards, with moderate implications for bank credit risk and near-term sentiment.