APRA has weeded out less prudent lending

The banking watchdog's efforts to cool investor demand in housing has weeded out some "less than prudent" lending practices.

While "macro prudential" measures have been taken, Australian Prudential Regulation Authority chairman Wayne Byres sees it as "very much bread-and-butter supervision activity".

APRA's success won't be judged by house prices, but rather on bank loan books that are built on a "solid foundation and sound lending standards", he told a Senate estimates hearing on Wednesday.