The Reserve Bank of Australia (RBA) has articulated its concern over the fast-growing household debt amid the booming property market, warning that it poses potential risks to financial stability, and the regulator will intervene when necessary. In an online speech ahead of its biannual Financial Stability Review, RBA assistant governor Michelle Bullock said that the increase in housing prices and housing debt could create a risk to financial stability while acknowledging the strong property market positive for the economy. “Sustained strong growth in credit in excess of income growth may result in vulnerabilities building in a bank and household balance sheet,” she said on Sep. 22. She added that the central bank is now monitoring the potential risks associated with the “dramatic rebound in the housing market” and “the accompanying rise in credit.” “It is these macro-financial risks that warrant close watching,” she said. “Whether or not there is need …