An outgoing chief bank regulator has made a stunning claim, detailing how some Aussies could prosper from falling house prices.
Outgoing Australian Prudential Regulation Authority (APRA) chairman, Wayne Byres, made the claim while putting banks’ ability to mandate prices at arm’s length. “APRA’s interest in housing stems from our job to protect bank depositors — who provide the funds that banks lend for housing — and from seeking to promote overall financial system stability,” the ABC reported him saying during his last outing as APRA boss.
“We do that through ensuring bank balance sheets are sound, and lending standards are appropriate.” Mr Byres departs as APRA chairman on October 30 but gave a few parting thoughts in a lunchtime speech hosted by FINSIA.
Australian Prudential Regulation Authority (APRA) chairman Wayne Byres departs as chair later this month. “Incidentally, that benefits borrowers (by limiting their capacity to overextend themselves) and impacts housing prices (through influencing the demand curve for housing) but both of those are indirect consequences of our core tasks: they are not our goals,” he continued.
Mr Byres reportedly told the lunch it is not the regulator’s responsibility to safeguard borrowers from potentially overextending themselves with loans.
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