RBA Says Share of Borrowers in Early Financial Stress Is Growing

A growing number of Australian households are in the early stages of financial stress, while lenders remain in a solid position to absorb loan losses if needed, the nation’s central bank said.

“A small but rising share of borrowers are on the cusp, or in early stages of financial stress,” the Reserve Bank said in its semi-annual Financial Stability Review released in Sydney on Friday, pointing out that the share of borrowers falling behind on mortgage payments has “begun to pick up from a low level.”