Gareth Parker from 6PR recently interviewed Shayne Elliott, CEO of ANZ Bank, discussing the current state of the housing market and economy. Parker shared observations about properties in his neighborhood selling quickly, highlighting a resurgence in the real estate market after a prolonged downturn.
Elliott noted an improved economic outlook compared to a year ago when COVID-19 posed significant challenges. "Here we are and things look pretty rosy," he stated, attributing this to substantial government support and economic resilience. He emphasized that the Australian economy is fundamentally sound, supported by regulatory frameworks and significant government interventions amounting to hundreds of billions of dollars.
When questioned about lending amidst rising property valuations, Elliott explained that banks prioritize borrowers' ability to service their debt through varying conditions. "We're paid to be cautious," he said, noting that while they assess clients based on current interest rates, they also factor in potential rate increases as a precautionary measure.
Elliott acknowledged concerns about the winding down of government support like JobKeeper but downplayed fears of an economic cliff. He suggested that many have already transitioned off such programs naturally. However, he warned there would still be impacts: "There will be an impact."
Discussing changes in consumer behavior during the pandemic, Elliott observed a significant increase in savings and reduced credit card debt among Australians. Additionally, there has been a notable shift towards digital banking, with ANZ's mobile app seeing a 30% increase in transaction volumes over the past year.
The conversation concluded with mutual appreciation between Parker and Elliott for their discussion on 6PR Breakfast.