Credit crunch deepens as banks dawdle on capital

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Banks have become more wary about lending to workers in industries hit by the coronavirus outbreak, mortgage brokers say, as the pandemic leads to tighter credit conditions in the $1.7 trillion home loan market.

Several major lenders have this month implemented tougher vetting of prospective customers in response to the pandemic, with brokers reporting banks being cautious towards borrowers from hospitality, airlines, tourism and parts of retail.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.