Financial Stability Snapshot 12 October 2018

 

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Global Economic outlook

Improving global economy, but risks to growth.

Economy balance

Low global interest rates, high asset prices and low volatility pose risks.

China Debt

China debt is high but stabilising. 260% non-financial debt to GDP.

Household debt

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

Housing credit

Demand and supply have declined. Investor credit decreased sharply to 1%, owner-occupier credit only slightly to 7%.

Riskier lending moderating

The share of total home loans with more than 90% loan to valuation is 6%, interest-only loans make up 16%.

Commercial property risks

Prices are up, yields are low.

Non-performing loans

Non-performing loans are rising but at 0.9% low.

Banks well capitalised

The Common Equity Tier 1 (CET1) ratio is 10.5%, but banks are facing business risks.