UK launch & Zip biz -Next Month, page-279

Housing downturn isn't a huge issue because most of the residential properties have gained equity over the years. Banks only make losses if house prices drop 30%+.

Residential is considered one of the least risky areas of a bank which is why they are classed a low RWA (Risk-weighted asset) compared to higher risk business and agribusiness lending (both 100% RWA and very capital-expensive for banks).

I'm a Risk Analyst, trust me when I say CBA has the least to worry about. Also worth noting they announced a dividend payment today, at the highest amount the regulators would allow for. For a bank to pay a dividend this half they had to complete internal stress testing (which is what I do) and the board has to show the results to APRA to gain permission to pay a dividend. CBA is well capitalised and well positioned to weather this storm (their recent divestments helped their capital ratios) and are even paying a dividend. They'll be fine mate, definitly the safest bank in Australia by a long shot.

I'm too young to be holding banks but one day when I rotate my growth portfolio into yield I'll be buying CBA. Also a big fan of MQG!