Australian Banks Sitting on A$500 Billion of 'Liar Loans,' UBS Says

Photographer: Brendon Thorne/Bloomberg
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Here’s something else for policy makers to worry about as they attempt to engineer a soft landing in Australia’s property market.

The country’s lenders could be sitting on A$500 billion ($402 billion) of “liar loans,” or mortgages obtained on inaccurate financial information, according to an estimate from UBS Group AG.