NAB and Macquarie still exceeding regulator's limit

Numerous Australian banks, including Macquarie and National Australia Bank (NAB) are still exceeding the regulator's limits on the expansion of lending to property investors, despite several warnings over the last year. The Australian Prudential Regulation Authority (APRA) has mandated that banks ensure loans made to landlords did not grow faster than 10% per year after the rate grew at 10.4% in 2014. While this rate came in at below 10% on average for the first time after this in October, some banks are still exceeding the limit. 

Several banks, including Macquarie and NAB, are still exceeding the 10 per cent speed limit on investor loan growth the banking regulator imposed a year ago.

In December 2014, along with numerous other temporary macroprudential rules, the Australian Prudential and Regulation Authority said it wanted banks to ensure loans to landlords did not grow faster than 10 per cent a year.

Growth in loans to landlords declined by 2 per cent in 2015, but some major banks are still exceeding APRA's 10 per cent growth limit.

Sector-wide, lenders have complied, with growth in loans to investors slowing to 8.5 per cent in 2015, according to the latest figures from APRA. After coming in at 10.4 per cent in 2014, the annualised rate dipped below the 10 per cent cap for the first time in October.

But APRA still has some individual offenders in its sights.