RBA hails risk reduction

THE Reserve Bank praised efforts by regulators to de-risk the Australian economy.

The RBA said the roles of supervisory bodies such as the Australian Prudential Regulation Authority and their collaborative ties with each other and the central bank were vital to promoting sound financial practices.

APRA has taken a bigger stick to the riskier parts of the property market in the past few months, requiring banks to limit interest-only lending to 30 per cent of new loans, and limiting lending growth.