Digital Finance Analytics (DFA) Blog
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A cornerstone of banking regulation and control is the application of capital ratios, which acts a brake on their ability to write more loans. The rules are set by the Bank of International Settlement, but they may be interpreted by local regulators, like APRA in Australia to take account of local conditions. BIS has no … Continue reading “The Capital Conundrum”
Interesting release from Moody’s today on securitisation of non-conforming loans in Australia. Non-conforming loans are defined those who fall outside normal credit approval criteria, for example because of a negative credit history, or because borrowers provided limited verification of their financial situation, or required an abnormally large loan, and as a result they do not … Continue reading “Australian non-conforming loans are higher quality than pre-2008 US and UK equivalents – Moody’s”
APRA just released their quarterly data on housing exposures of the Authorised Deposit-taking Institutions in Australia for the June 2014 quarter. As at 30 June 2014, the total of residential term loans to households held by all ADIs was $1.23 trillion. This is an increase of $29.7 billion (2.5 per cent) on 31 March 2014 … Continue reading “Interest Only Loans Up To 43.2% In June – APRA”
The ABS published their housing finance data today to June 2014. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.0%. The value of commitments grew faster than the number of transaction, so the average loan size is increasing. Growth in NSW, WA and TAS was faster than … Continue reading “June Housing Finance Up 1% – ABS”
We know that first time buyers are sitting on the sidelines, as shown in our recent surveys. The biggest barrier is price. Many are desperate to enter the market and would jump at any additional incentive. No surprise then to see proposals popping up from time to time to try and assist first time buyers. … Continue reading “Why Enticing First Time Buyers With Super Is A Bad Idea”