Commonwealth Bank of Australia
(ASX:CBA) boss Ian Narev has acknowledged the risk of the housing market overheating amid strong demand and low interest rates.
But Mr Narev says a property bubble is unlikely with banks behaving prudently.
He also says he’s aware of the risks that rapid price growth could become dangerous if it continued for an extended period.
Mr Narev says fears about the housing market overheating were justified, but he was not yet concerned about a bubble forming.
Australia and New Zealand Banking Group
(ASX:ANZ) chairman John Morschel agreed the market is not a bubble but says it could be in two years time.
CBA generated a net profit of $7.7 billion in the 2013 financial year.
