RBA ponders 'acceptable' loan growth

Ian Rogers
The banking sector's ride on the investment lending wave is a top topic for the Reserve Bank of Australia.

"Members were briefed on the main regulatory actions taken recently to address housing risks in the domestic economy," the minutes of the Reserve Bank's February monetary policy meeting observe.

"In particular, the Australian Prudential Regulation Authority had announced several policy measures in early December to reinforce sound residential mortgage lending practices.

"These policies included clarification of prudential expectations on what constituted acceptable growth in housing lending to investors and the possible steps that would be considered if APRA's expectations were not met, such as increased capital requirements."