Banks might face increased oversight from industry regulators in response to the “boom-time conditions” in parts of the Australian housing market, predicts new Aussie Home Loans chief executive James Symond. This is despite the recent slowing of lending to investors, he said.
Symond, the nephew of Aussie's founder and executive chairman John Symond, also said banks are becoming more cautious with higher-risk lending types including lending to owner-occupiers.
He also acknowledged interest rates “spur strong demand for loans”, Fairfax Media reported.
Symond added the growth in lending to property investors showed a slight easing and that even though banks were more cautious, “further levers” would still be imposed by regulators.
"I think the regulators have taken a keen interest in the mortgage industry, as they have in other industries, and I think that keen interest is only going to grow," said Symond.
"I think they will end up putting in some further levers in order to ensure there are appropriate boundaries within lending credit criteria, and governance that are even more responsible than they are today."
He was appointed chief executive last month for Aussie, which is 80% owned by the Commonwealth Bank.