Gottiboff panic! Can’t say I disagree at this point, though:
The banking inquiry combined with regulator-driven clamps on lending will initially boost banking profits and margins but they will create a longer term threat to dwelling prices.
But that’s just the start. When you put an industry like banking under extreme pressure surprising things happen. And Australian banking in 2017-18 faces unprecedented pressure from parliamentary inquiries and aggressive banking regulators coming after a dwelling boom that has left banks overexposed to housing.
