Of course they let 60% of their loan book end up in residential real estate, so they haven't been paying much attention to anything, it seems.
Australian Homes May Cost Banks $7.5 Billion in a Year, Deustche Bank Says
Australia’s biggest banks may lose about A$7 billion ($7.5 billion) from a 30 percent drop in home prices and a 9 percent default rate, Deutsche Bank AG said.
The banks face losses ranging from A$61 million in the mildest scenario to A$41.7 billion in a year, the report said. The smallest loss would result from a 1 percent default rate and a 10 percent home-price decline, while the worst-case scenario is based on a 15 percent default rate and a 60 percent plunge in housing values, Deutsche Bank said.
Still, Commonwealth Bank, Westpac, National Australia Bank, ANZ Bank and Macquarie Bank Ltd. face a A$223 billion “gap” as they seek to meet Basel’s net stable funding ratio, with National Australia Bank having the biggest shortfall, the Deutsche Bank analysts wrote.