Investing.com - Data on repayment buffer mortgage holders have established helps the Reserve Bank of Australia for monetary-policy and financial-stability considerations, Assistant Gov. Guy Debelle said Wednesday.
The data show two-thirds of borrowing is covered by a repayment buffer of at least one month's required mortgage payment, Debelle said in a speech to the 28th Australasian Finance and Banking Conference at Sydney. For half of this borrowing the buffer is more than a year.
"As the time series on this loan feature accumulates it has the potential to be useful information for monetary policy as well as financial-stability considerations," he said.
"It will also allow an assessment of the correlations between the various drivers of risk that may lead to credit deterioration.