Reserve Bank sounds warning on rise of unsecured lending
Unsecured credit rose 10.5% in the first quarter of 2019 compared with asset-backed borrowing such as mortgages, which rose 4.9% in the same period
01 December 2019 - 19:19
The Reserve Bank has flagged a rise in unsecured credit levels, warning that it could point to distressed borrowing by households battling rising debt levels and weak income growth.
Households account for 45% of all private-sector credit extension, and the banking sector’s direct and indirect credit exposure to households could threaten the stability of the banking system, the Reserve Bank said in its most recent financial stability review...
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