Financial Stability Snapshot 4 October 2019

 

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Global Economy

Risks are on the rise.

Economy balance

Low global interest rates and risk aversion. High asset prices pose risks.

China

China is balancing growth and financial reform.

Household debt

With a share of income of 190 per cent, household debt is high.

Housing prices

After a period of decrease, housing prices increased by 0.5 per cent. Negative equity is low but rising in some areas.

Riskier lending low

The share of total home loans with more than 90 per cent loan to valuation is 7 per cent, interest-only loans make up 15 per cent.

Commercial property risks

Prices are high, yields are low.

Non-performing loans

Non-performing loans are rising but low at 1 per cent.

Banks well capitalised

The Common Equity Tier 1 (CET1) ratio is 11.1 per cent, but banks are facing business risks.