Moody's: Australian banks face home loans danger

A recent report by Moody's rating agency says Australia's lenders are grappling with the highest concentration of home loans in the world.

That is a worry for Australia's economy because, says Moody's, it could see the housing market collapse.

Moody's says Australian banks are over-exposed to residential mortgages on homes which appear to be overvalued.

It says that if house prices fall, a banking meltdown could ensue.

Phil Mercer reports from Sydney.

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