Australian Banks, Households Resilient to High Rates, RBA Says
- RBA says very few mortgage borrowers are at risk of default
- Risk may rise if households take more debt should rates ease
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The share of Australian borrowers in severe financial stress remains small with the vast majority still able to service their debts, the Reserve Bank said in a half-yearly review, while highlighting other areas of threat to the banking system including from China.
“The risk of widespread financial stress remains limited due to generally strong financial positions of most borrowers,” the RBA said in its Financial Stability Review released in Sydney on Thursday. “Very few mortgage borrowers are in negative equity, limiting the impact on lenders in the event of default and supporting their ability to continue providing credit to the economy.”