Tightening of lending standards by Australian banks is likely to cause a " correction " and " crisis " in lower - priced loans that rapidly spread , resulting in smaller developer defaults , a sharp contraction in lending , with a " worst case " scenario of significant falls in home prices and a nationwide recession , according to a new report by analysts CLSA . The authors recommend a " sell " on stocks of companies most likely to be affected , including CBA , listed property giant Lendlease and others . Meanwhile , UBS warns in a new report that the rapid increase in loan supply is a significant risk for offshore banks which are funding the record number of new loans .
Tightening of lending standards by Australian banks is likely to cause a "correction" and "crisis" in lower-priced apartments that will spread, resulting in smaller developer defaults, a sharp contraction in construction, with a "worst case" scenario of significant falls in home prices and a nationwide recession, according to a new report by analysts CLSA. The authors recommend a "sell" on stocks of companies most likely to be affected, including CBA, listed property giant Lendlease and Mirvac. Meanwhile, UBS warns in a new report that the rapid increase in housing supply is a significant risk for offshore banks which are funding the record number of new developments.