Impaired commercial property exposures fall

Rohneel Kumar
Banks' impaired commercial property exposures are on the wane, standing at A$1.7 billion at December 2014 compared with $4.9 billion a year earlier, according to the Australian Prudential Regulatory Authority.

APRA's quarterly release on Authorised Deposit-taking Institution Property Exposures shows ADIs held commercial property exposures of $228 billion at the end of 2014, an increase of $3 billion from September 2014 and an increase of $13 billion from December 2013.

The largest property exposures were office property ($69 billion) and retail property ($50.9 billion). These represented 30.3 per cent and 22.4 per cent of all exposures respectively.