The transition from the mining boom is creating biases in lending, with about 95 per cent of the extra credit extended since mid-2012 being directed towards residential or commercial property, Fairfax Media reports.
UBS banking analyst Jonathan Mott said that examination of official figures suggested the overwhelming majority of net credit growth had been property-oriented, with owner-occupied housing leading the way.
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Mr Mott’s report noted that non-property business lending had “hit a wall”, accounting for just 2.6 per cent of credit growth over the last two years, according to Fairfax.
The research found net credit growth of $60.6 billion for owner-occupied housing, alongside expansion of $45.8bn for residential investment properties, $10bn for commercial property and just $3.2bn for non-property business lending.