On Wednesday, the National Australia Bank Ltd. (ASX: NAB) share price got whacked, falling 3%.
Despite the selloff, which means the NAB share price has fallen more than 10% in six weeks, the bank did not release any material news to investors.
However, each of Australia's major banks, including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ), have come under selling pressure this week following a bearish research report issued by Moody's.
The international credit ratings agency downgraded each of the big banks, including NAB, citing significant concerns about the housing market.
"High and rising household debt in the context of low nominal wage growth has led to very high levels of household leverage, thereby increasing the household sector's and, by extension, the banking sector's sensitivity to a potential shock," Moody's report read.
Elsewhere, NAB is finding itself in hot water, according to Fairfax Media. The news outlet reported that the bank's financial planners may find themselves in breach of new industry rules. Fairfax wrote, "some staff had been incorrectly witnessing declarations on forms that authorise who gets a client's superannuation if they die."
Is it time to buy NAB shares?
Today's share price decline is only a small selloff. However, I remain a little concerned about the banking sector at present, so I'm not in any rush to buy NAB shares. Nonetheless, at today's prices, it is worth a spot on a watchlist, in my opinion.
