As a follow-up from our recent post, this chart may explain why CBA has been forced to trim its investment housing lending sails.
If you annualise the monthly net movements in investment loan stock, in December CBA came out at 10.3%, above the 10% APRA imposed speed limit. Also, clearly the growth trend was upwards.
Further evidence to our hypothesis that the regulator picked up the phone, and suggested they should trim their growth. It also shows that the remaining majors need to be a little careful, but there is headroom in the system to take up some of the slack. It will be interesting to see how this plays out.
Of course the APRA data is full of noise thanks to ongoing loan reclassification, but the trend is pretty clear.
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