Landlord boom a bigger risk for Australian bad debts than businesses
Level of Aussie household indebtedness now higher than in other developed nations
Sydney
THE boom in Australian buy-to-let mortgages that has helped fuel record household borrowing could be the next driver of bank bad debts rather than corporate defaults.
While business loan losses were behind the biggest bad debt cycles in the past three decades, according to a discussion paper from the Reserve Bank of Australia (RBA), unprecedented borrowing by individuals and signs that the residential property market is coming off the boil mean that for banks the next one might be different.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
China Evergrande to delay 2023 annual results; shares remain suspended
Dubai ruler’s firm refinances US$8.2 billion to tap property boom
US home prices jump by most in nearly two years in February
UK’s second biggest mortgage lender pulls offers over flood risk
China state firm to sell 20 Shanghai office towers in downturn
Strained Chinese cities struggle to pay home-buying subsidies