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RBA Financial Stability Review April 2025
Risks to the Australian financial system from lending to households, businesses and commercial real estate have remained contained. Budget pressures remain pervasive across the Australian community, but they have eased a little for some and the share of borrowers experiencing severe financial stress remains small, reflecting the continued strength in the labour market and the maintenance of prudent lending standards. After earlier increases, the share of households that have fallen behind on their mortgages appears to have stabilised at pre-pandemic levels and almost all borrowers now benefit from home values that ... (full story)
Added at 7:34pm
- RESERVE BANK OF AUSTRALIA FINANCIAL STABILITY REVIEW:
US TARIFF UNCERTAINTY POSES SUBSTANTIAL HEADWINDS TO GLOBAL GROWTH
TARIFFS COULD HAVE CHILLING EFFECT ON BUSINESS INVESTMENT, CONSUMER SPENDING
RISK OF DISORDERLY CORRECTION IN GLOBAL ASSET PRICES, PUTTING PRESSURE ON NON-BANK LENDERS
HEDGE FUNDS PARTICULARLY VULNERABLE TO RE-PRICING OR RISK DUE TO HIGHLY LEVERAGED POSITIONS
US TARIFFS ON CHINA MAY NECESSITATE FURTHER POLICY STIMULUS FROM BEIJING
GLOBAL SLOWDOWN, PARTICULARLY IN CHINA, COULD SPILL OVER INTO AUSTRALIA
RISK AVERSION COULD INCREASE FINANCING COSTS, CAUSE LIQUIDITY STRAINS
AUSTRALIAN FINANCIAL SYSTEM WELL PLACED IN EVENT OF SEVERE GLOBAL DOWNTURN
STRONG FINANCIAL POSITION OF MOST HOUSEHOLD, BANKS LIMIT RISK OF WIDESPREAD DISRUPTION
AUSTRALIAN BANKS WELL CAPITALISED, ABLE TO ABSORB LARGE LOAN LOSSES
IMPORTANT THAT BANK LENDING STANDARDS REMAIN SOUND, ARE NOT RELAXED
BUDGET PRESSURES PERVASIVE ACROSS AUSTRALIAN HOUSEHOLDS, BUT EXPECTED TO EASE A LITTLE
WARY THAT LOWER INTEREST RATES COULD ENCOURAGE HOUSEHOLDS TO TAKE ON EXCESSIVE DEBT
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