Mon, 1st Apr 2024

This week's Financial Services Online podcast with Paige Estritori highlights two major stories from Australia's financial landscape in early April 2024. The Australian Prudential Regulation Authority (APRA) plans a comprehensive financial resilience assessment next year, conducting stress tests on not just the banking sector but also insurers and superannuation funds to prepare for potential economic and environmental shocks. In contrast, mortgage arrears, particularly among variable mortgage rate holders, have reached unprecedented levels, reflecting the strain on Australian households, due to increased interest rate and inflation coupled with dipped real disposable income. The Fitch Ratings report shows early-stage delinquencies peaking since 2016, with a silver lining in solid homeowner equity helping to cushion asset-backed losses. As national median home values have tipped over $1 million, another 4-6% increase in housing prices is projected for 2024.n