APRA Commercial Property
On Mar. 7, APRA published a review of commercial property lending.
- Commercial property lending source of significant loss for banks at home and abroad.
- Response to new market dynamics, indications underwriting standards under pressure.
- APRA undertook thematic review of commercial property lending over course of 2016.
- Looked at portfolio controls, underwriting standards of large domestic, foreign banks.
- ADI boards need to be conscious of settings for underwriting standards and controls.
- All should actively challenge whether expectations of growth in lending are achievable.
- Ability to challenge hurt by inadequate data, poor monitoring, incomplete bank controls.
- Expects ADIs to improve capabilities in area, written to individual ADIs with comments.
- Information gained from thematic review will guide targeted supervisory interactions.
||Financial; Operations; Product
Last substantive update on 03/08/2017