[30] At the same time, since this is in part due to a more cautious attitude of banks to emerging risks, it may contribute to a reduction in credit supply when faced with a sustained weakening of borrower creditworthiness.
Our senior officers have been in frequent contact with all the significant financial institutions operating in Australian markets, with our colleagues at APRA and other regulatory agencies, and with our counterparts abroad. The RBA Board spent considerable time at its meetings examining market developments and considering their possible implications.