The country’s banking regulator is preparing to ease lending rules on banks, which would allow them to more easily finance property development, mid-sized businesses and public infrastructure, a move it hopes will support economic growth and boost flat-lining productivity.
Australian Prudential Regulation Authority chairman John Lonsdale outlined the changes – which would allow banks to hold less capital against some forms of lending – while flagging tougher liquidity rules, which came into focus after Silicon Valley Bank collapsed in the United States in 2023.