Big four Aussie banks still face risks: Fitch

Sydney

RECENT increases in home loan rates by Australia's major banks should help cool growth in lending to more vulnerable buyers, but banks still face risks from high household debt and an overheated property sector, Fitch Ratings said on Wednesday.

Australia's "Big Four" banks have all raised interest rates on home loans for owner-occupiers and investors over the last two weeks, even though the Reserve Bank of Australia has kept the cash rate on hold at a record-low level.