Small business loans declined at the same time as real estate prices, according to the Council of Financial Regulators (CFR).
The CFR, composed of the Reserve Bank of Australia (RBA), the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC) and the Australian Treasury, found that that small business loans had dropped over the last years year.
"Lenders themselves apply a tighter audit of small business spending and revenues, and loans could be affected by declining collateral values ​​when housing prices fall," the CFR said.
Real estate growth remained stable at a low level, with weaker lending investors, including major banks, the board said.
The council also noted signs of stabilization in Sydney and Melbourne, but the adjustment of the last two years was important, conditions in capitals remaining weak.
"The risks associated with falling housing prices for lenders have so far been limited by the strength of the labor market, low interest rates, and improved standards. in the last few years. The arrears of home loans continued to increase slightly, but with significant differences from one region to another, the board said.
Top suburbs:
Scarborough
,
Darlington
,
Newcastle
,
Kawana
,
Cardiff South
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