The Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking Corporation (ASX:WBC) have the greatest exposure to the rising number of missed mortgage repayments.
Credit rating agency Fitch has provided a snapshot of problem loans in Australia, revealing that most of the stress is being felt in growth corridors through capital cities, rather than areas hit by natural disasters.
Fitch says the growing mortgage stress is due to higher interest rates and the increased cost of living. Despite the increase in troubled mortgages, the agency is not forecasting a severe impact on housing prices.
Commonwealth Bank recorded an interim net profit of $3 billion in the six months to the end of December 2010.
