Based on data from the Australian Bureau of Statistics (ABS) and the Australian Taxation Office, the proportion of households owning investment properties is around 8 to 10 per cent. Some, though not all, of these properties are partly debt financed.
It’s reasonable to ask the question: if banks are too interconnected in that sense, should they be made less interconnected? One way that that might be done is through greater use of subsidiary structures by banks that operate across borders. I don’t want to overstate the case for this because I recognise it’s a complex issue.