I had a similar thing happen, recently started a business and...

I had a similar thing happen, recently started a business and wanted a credit card for the points (even though they are not really that rewarding), improve short term cash flow and keep track of things for BAS statements separate from personal accounts.

They had been trying to sell me credit cards for years probably as I had considerable savings.

So they said I was approved for 20K, I said that would be unnecessary and that 10k would be fine. Get the credit card and find out that it was only 5K, thought they must have made a mistake.

Rang up and was told 5K limit and use it for a bit then re-apply. This is despite having many times the 10K in cash sitting there for many years.

I suppose they are reducing their exposure to comply with the new rules, and that mortgage's are more profitable despite low rates due to the high leverage? At perceived lower risk as the loan is secured against the house?

Having credit cards that don't have any outstanding balance would still add their exposure, just like it does to the holder, and make them no revenue. I suppose they are trying to reduce that.

Interesting though....Previously they just seem to want to borrow borrow borrow. A few years ago you couldn't go into a branch without them trying to sell you a personal loan, car loan, house loan.