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Australia's Problems ‘luxury’ Ones: Citi - 4 August 2013 (AFR)

Australia's problems 'luxury' ones: Citi

4 August 2013

Citiglobal chief economist Willem Buiter believes the global economy is at a crucial turning point as emerging markets like China slow and says Australia's problems are "luxury problems compared to the rest of the world".

My View: (4 August 2013)

Although I agree with the fact that the Australian banking system is heavily reliant on mortgage lending, I seriously dispute the statement made in the this article about the weighting of 80% to this segment. Recent APRA statistics suggest about 63-65% focus on mortgage lending and 30-32% towards business/commercial lending and remaining with personal and other lending. The major banks constitute over 85% of the home lending market in Australia and Westpac has the highest exposure (approximately 72%) in mortgages.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.