Australia's financial regulator said last week that it was assessing the practices of lenders to decide if any supervisory action will be required.
"We are currently assessing the plans and practices of individual ADIs and, over the next month or so, will be considering whether any supervisory action is needed," said Wayne Byres, chairman of the Australian Prudential Regulation Authority (APRA). He was referring to authorised deposit-taking institutions (ADIs). "So far, our discussions with the major lenders have suggested they recognise it is in everyone's interests for sound lending standards to be maintained. But we shall see - we are ready to take further action if needed," he told the House of Representatives Standing Committee on Economics. APRA and Australia's central bank are keeping a close eye on the housing market, particularly in Sydney and Melbourne where speculative demand has sent home prices soaring.