Of course, writing too many loans that people cant afford will ultimately destroy shareholder value, if it all goes bad. But a little bit of mis-selling here and there? A little pushing of the boundaries of responsible lending to feed Australians obsession with homeownership? Sure.
The heat is coming out of the property market. Only half the properties that went to auction in Sydney and Melbourne on the weekend found buyers.
Photo: Peter Braig
Instead of disciplined scrutiny of borrowers financial accounts, banks have been found to have loan approval processes that rely excessively on so-called benchmarks of living expenses, with little – and sometimes no – attention paid to households actual costs, or their overall debt profile.
As the hea…
Read the full article at: https://www.smh.com.au/business/the-economy/brake-on-australia-s-addiction-to-property-has-come-just-in-time-20180715-p4zrk2.html