Their declining market share has been picked up by the major banks, which now account for about 80 per cent of all new housing loans. These developments have led to concerns that borrowers may not have sufficient access to loans or that the cost of new loans may increase.
And the enhanced flexibility inherent in that trend imparts resilience against shocks of the kinds that we have experienced in the past few years. Unfortunately, the future path of the economy is likely to come into sharper focus only gradually. In the interim, we need to remain mindful of the possibility that lingering business caution could be an impediment to improved economic performance.