市场见解

NAB (ASX:NAB) share price falling on credit restriction calls

The NAB share price is falling slightly today after its Chair, Phil Chronican, said credit limitations would be a “rational” response to curb the booming housing market.
The post NAB (ASX:NAB) share price falling on credit restriction calls appeared first on The Motley Fool Australia. –

A hand moves a building block from green arrow to red, indicating negative interest rates

The 澳大利亚国家银行 (ASX: NAB) share price is falling slightly today. This comes after its chair, Phil Chronican, said credit limitations would be a “rational” response to curb the booming housing market.

Limiting Australia’s housing boom

Record-low interest rates have led to a surge in Australian house prices. Currently, prices in Australia’s capital cities are rising at their fastest rate in 32 years.

Chronican said this was the expected result of the reserve bank’s cash-rate policy. Additionally, he stated that the government could focus on macroprudential policies instead. Chronican believes this could curb the housing boom without losing the positive effects of a low rate.

Macroprudential policies are centralised regulatory controls in the financial market. They are aimed at identifying and reducing systemic risks. In this case, Chronican believes such policies would be focused on limiting borrowing and credit lending amounts.

Management commentary

According to the Sydney Morning Herald, Chronican told a Governance Institute lunch in Sydney:

We are running an extraordinarily accommodating monetary policy with interest rates at levels that none of us can remember, because they are completely unprecedented.

We shouldn’t be surprised that that’s going to show up in price inflation in some form or another. At the moment, we’re seeing that in asset price inflation, and it’s not just real estate, we’ve seen financial assets as well.

Chronican highlighted the use of governmental credit regulation in two of Australia’s close Asian neighbours as an example of effective use of these policies. NAB forecasts Australian house prices to rise by 10% over the next 12 months.

Chronican continued:

There are plenty of economies, particularly in economies like Singapore and New Zealand, where macroprudential policies have been brought in for short periods of time to take the heat out of the market. And if that happens, then as I said, that would be understandable.

And I just point out that we’re seeing this strong house price growth at a time when Australia’s population growth is at record lows. You can imagine what the pressure is going to be like as migration is reopened in the coming years.

NAB share price snapshot

Founded in 1982, NAB is among the largest listed companies on the ASX. It is also one of the big four Australian banks in terms of market capitalisation, earnings, and customers. In addition, it is the 21st largest bank in the world by market capitalisation.

At the time of writing, the NAB share price is down 0.41% to $26.58, but has performed well in 2021 so far, up 17%.

This far exceeds the growth of the Commonwealth Bank (ASX: CBA) share price, which has gained 7%. However, it is still below both ANZ (ASX: ANZ) share price gains of 23% and runaway leader Westpac (ASX: WBC), which is up 30%. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post NAB (ASX:NAB) share price falling on credit restriction calls appeared first on The Motley Fool Australia.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!