Deutsche: APRA fudging mortgage data?

Monday 25 March 2019

Analysts at Deutsche bank believe they have found a major flaw in APRA’s mortgage data, which significantly understates average loan size.

Basically, because APRA has failed to adjust for split-loans, the $276,000 average loan size figure has been understated by around 40%, according to Deutsche, thus giving regulators a false sense of security regarding financial stability risks. From The AFR:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.