With 60% of Australian bank lending housing related, banks are inextricably bound to the property cycle. Unlike the worst-hit global geographies, the Australian household did not go through a period of deleveraging post-GFC, as housing credit continued to outpace income growth. With this backdrop, regulators are now doing their utmost to increase banks’ resilience and the banks too are chipping in.     read more.....

Publication by Harbour Asset Management