RBA Financial Stability Review states households and businesses are well placed to weather slower economy and falling house prices

Says: Even if house prices fell a further 20%, only 5% of mortgages would be in negative equity. Less than 1% of borrowers in negative equity and household balance sheets remain strong. Banks are well-positioned to weather a material deterioration in the housing market. Pockets of stress in households and businesses but resilient overall with low loan arrears. Most businesses are well placed to manage elevated costs and some passing on to customers. Share of owner-occupied borrowers with cash flow shortfall still low at around 2%. Major risks to domestic financial stability are coming from abroad. Lending standards remain sound and riskier forms of lending are restrained