Bank of Queensland chairman Roger Davis says that on balance there is no housing bubble in the national housing market, with the boom confined to parts of Sydney and Melbourne.
Addressing shareholders at the lender's annual general meeting, Mr Davis said there was some divergence in the Australian economy as it slowly transitions from a resources-led economy to one driven by domestic housing and manufacturing.
"This transition is ongoing and despite low interest rates, many consumers and businesses are still cautious, which is translating to mixed levels of confidence," he said.
"There is no better example of this than the housing market, which differs vastly across the country."
Mr Davis noted that while some parts of Sydney and Melbourne are experiencing record property prices the rest of the country is not experiencing such boom conditions.
"Indeed, there are stark divergences across the major cities and regional areas," he said.
"Certainly the national average is distorted by low interest rates and particularly strong growth in the Sydney market where there are inherent supply/demand imbalances in housing."
Mr Davis concluded that these trends, when coupled with low system growth, suggest there is not a national housing bubble.
As such, he cautioned regulators against macroprudential changes which are designed to address the Sydney and Melbourne markets but would have unintended consequences in other areas where growth is more subdued like first home buyers and cities beyond the east coast.
Acting chief executive Jon Sutton said fiscal 2015 had gotten off to a good start for the bank, with the lender seeing encouraging signs of asset growth despite continued fierce competition across most market segments.
He urged government to adopt recommendations of the Financial System Inquiry quickly.
Looking ahead to the release of the final report of the Murray inquiry, Mr Sutton said Bank of Queensland supported any changes that provide better transparency on the risk weightings being applied under advanced models.
He said this would help to "level the playing field and reduce the large capital disparities that currently distort the Australian market".
"While it is pleasing that both the Inquiry and global regulators appear to understand these important issues, we are concerned that the time frames to implement any regulatory changes could be some years away," he said.
"We would like to see action taken quickly to address this issue, before the dominance of the big four is further entrenched. If that happens, Australian consumers will ultimately be the losers."