CBA closely monitors the real estate market, and will adjust housing lending if necessary
Matt Komen, chief executive of the Commonwealth Bank, says the bank will keep a close eye on strength in the housing market, and change lending practices if necessary as the lender begins its annual general meeting online.
In a letter to shareholders this morning, Komen reiterated the lending giant’s optimistic view of the economy, but also cited the boom in the housing market that has prompted regulators to Press the brakes in real estate lending.
“Looking forward, there is reason to be optimistic,” Komen said in prepared remarks.
“The stimulus provided by our governments during the lockdowns has been doing its job. Australians continue to amass more savings and many businesses are ready to take advantage of future opportunities.”
Housing activity remains strong. We continue to monitor this closely and adjust lending settings appropriately.”
The comments are a sign of caution within Australia’s largest bank over the housing boom – a concern shared by regulators. The banking regulator has taken its first step to Subprime lending curbed last weekBut at the time, Komen indicated that more intervention may be needed.
CBA Chairman Catherine Livingston was also asked by a shareholder what the bank is doing to address risks in the housing market.
Ms. Livingstone responded that the CBA has “strict” responsible lending practices, and noted that It raised the interest rate it uses to rate borrowers earlier this year, prior to the regulator’s move last week. “It is not in anyone’s interest to lend to people who are putting them in trouble,” said Ms. Livingston.