Treasurer confident APRA doing its job

Treasurer Scott Morrison is confident the regulator is keeping a watchful eye on banks' credit testing after a report found almost a third of mortgage applicants are lying about their financial standing to get a loan.

The survey conducted by investment bank UBS found 32 per cent of applicants admitted submitting documents that were "mostly" or "partially" accurate, with the bank estimating these "liar loans" are worth about $500 billion.

"There's this report, yep, but APRA's the one that will keep monitoring those issues and ensuring the banks aren't getting themselves in a sticky spot," Mr Morrison told Sky News on Tuesday.