APRA required serviceability assessments for new loans to be more conservative by basing them on the required principal and interest payments over the term of the loan remaining after the interest-only period. (Previously, some banks were assuming that the principal was being repaid over the entire life of the loan, which was clearly a lower bar for the borrower to meet.)
European Monetary Union is facing the greatest challenge in its history. The founding fathers knew very well that in the European Monetary Union – with a single monetary policy but national fiscal policies – safeguards were needed to ensure sound fiscal policy. Otherwise, the deficit bias would be reinforced.