Bendigo chief pops claims of a bubble
The head of Australia's biggest regional lender says there are no signs of an imminent housing market bubble.
Bendigo and Adelaide Bank chief executive Mike Hirst believes a recent rise in house prices, especially in Sydney, is nothing to worry about.
Recent figures from research firm RP Data show Sydney home prices are up 10 per cent since the start of the year.
But the rise has come after several years of weak growth in the Sydney property market, Mr Hirst told ABC TV.
"I think there's been relatively subdued growth leading up to this, so there's a bit of catch-up," he said. "Sydney seems to be the hottest spot and I think most people consider that it missed out on some of the rise in the earlier part of the decade."
Mr Hirst's comments echo recent statements from ANZ Australia chief executive Philip Chronican and Reserve Bank of Australia assistant governor Malcolm Edey.
The regional bank's chief also said Australian banks were doing a good job of maintaining prudent lending practices in an environment of low interest rates.
Mr Hirst said there was no need for more regulation of the industry than was already provided by the Australian Prudential Regulation Authority.
"The banks are still keeping their stress testing of serviceability at reasonable levels and APRA continued to remind us to be prudent with our lending and - as long as that's the case - I don't see a need for any other intervention," Mr Hirst said.
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