Philip Chronican, ANZ’s Chief Executive Officer, Australia has today said “Household arrears are a concerning trend. It is a problem that is going to stay for a while,”
The comments come a week after Fitch Ratings reported mortgage arrears had hit record highs. Mortgage arrears greater than 30 days increased from 1.39 percent to 1.79 percent in the March quarter this year. Arrears on low-doc loans hit 6.74 percent, up from 5.7 percent in the December 2010 quarter and above the peak 6.70 percent result recorded during the global financial crisis.
Meanwhile, the government is getting ready to cut the $1 million dollar retail deposit guarantee saying Australia and the domestic banking system survived the global crisis in good shape. It’s suggested the cap will be reduced to a figure between $100,000 and $250,000 in line with schemes in other advanced economies. . .
» Rising mortgage arrears a worry: ANZ – Sydney Morning Herald, 2nd June 2011.
» Mortgage arrears hit record highs – ABC News, 26th May 2011.
» Low-doc mortgage arrears top GFC peak – The Sydney Morning Herald, 26th May 2011.