A slump in house prices coupled with an increase in household debt could spell trouble for Australian banks, according to a leading credit rating agency.
Banks in Australia, as well as those in Canada and Sweden, face increased risk of a house price drop that could lead to higher loan losses, according to a report released by Moody’s Investors Services on Monday.
Moody’s believes a more substantial house price correction would lead to only limited losses on mortgages, as banks benefit from a range of safeguards. Photo: Paul Jeffers
READ MORE VIA DOMAIN