“Deferrals started expiring in late Sep with most due to expire before the end of October <graph 2.10>. A 4-month extension is possible on a case-by-case basis for borrowers that are not yet able to resume repayments but have good prospects of doing so. The vast majority of loans moving out of deferrals to date have not had trouble resuming repayments”.
“Around 97% of housing loans are in positive equity which should limit the extent of losses to banks <graph 2.12> – negative equity is concentrated within mining regions of WA, Qld and NT)”.
“Stress tests of the Australian banking system indicate under a baseline scenario, using the forecasts from Sep SoMP, banks will remain very well capitalised, not even entering their capital conservation buffers. Even under severe stress testing, banks would remain above their minimum capital requirements. This implies banks will be well placed to continue lending and support the economic recovery <graph 3.6>”. – quoted Christian Stevens (https://www.linkedin.com/…/propertyfinance_rba-financial-st…)