Some may face a sizeable “repayment shock, possibly compounded by negative equity” when they try to refinance in the next year or two, Byres added.
In response, Byres expects lending policy changes, coupled with rising interest rates, will mean risky borrowing will “moderate in the period ahead”.Meanwhile, a $3.5 trillion pool of national superannuation savings will provide a very healthy flow of new savings that will need to be invested, which would “only be beneficial” for the Australian economy.
“If Australia is to invest in the transition to a low carbon economy, consistent with our 2050 net zero emissions target, the banking system will play an important role financing that investment,” he said.APRA chair Wayne Byres has warned the banking sector the next few years may not be plain sailing.“And second, it makes it difficult for banks to satisfy the increasing demands from investors, standard-setters and peer regulators for greater climate risk disclosure,” Byres said.
I blame it all on the Labor government (is that not what they did whenever something went wrong under the coalition?)
Where is Brian Seymour?