Financial Stability Snapshot 9 October 2020

 

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Unemployment rate

6.8%.

Low compensation for risk

Asset prices could fall.

Substantial policy support

Fiscal, Monetary, Prudential

Australian banks resilient

Capital high, Common Equity Tier 1 (CET1) ratio is at 11.5 per cent. Liquidity ample, liquidity coverage ratio (LCR) greater than 150%.

Loan repayment deferrals

Housing loans deferrals is at 7%. Small and medium business loans deferrals is at 11%.

Uncertainty for businesses is high

Small business revenue is greater than 15% but large cash buffers

Non-performing loans

Non-performing loans are low but will rise by 1%.

Housing risks high

Housing prices are coming down. Negative equity is at 3%.

Commercial property risks are high

Share of banks' assets are low at 6%.