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Archive for July 2018

To be, or not to be, a bank?

Written by Graham Andersen,  Chief Executive, Australian Mortgage Marketplace. Australia has gone through a long period where no new mortgage funders of any significance, either banks or non-banks, were created but we are now seeing a new era of neo-lenders and challenger banks appearing on the scene. Since 2007 the financial system has heavily favoured…

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‘We’re not competing with the non-banks’: AMM

This article originally appeared on Mortgage Business on 30/7/18. The co-founder of neo-lender Australian Mortgage Marketplace has outlined where the group sits in the new order of APRA and ASIC-regulated mortgage providers. Becoming an APRA-regulated neo-bank is a considerable undertaking and an expensive exercise. A handful of new players are choosing this path, such as…

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Putting APRA’s Stress Test to the Test.

This article originally appeared on LF Economics on 12/7/2018. So yesterday APRA came out and said that if unemployment rose to 11%, House prices fell by 35%, and the Chinese economy tanked, that the Australian banking system would be able to withstand the economic stresses associated with this type of economic destruction.   So let’s…

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Why aren't we using superannuation to fund mortgages?

This article originally appeared on Mortgage Business on 9/7/18. It seems like a logical idea. Superannuation funds need a fixed-income asset to invest in. Lenders need domestic funding. Super, meet mortgages. But Australia’s $2.6 trillion superannuation market is still unwilling to fund home loans. This is not a new argument — people have been debating the…

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Digital Finance Analytics: Mortgage Stress Continues To Claw Higher

Digital Finance Analytics (DFA) has released the June 2018 mortgage stress and default analysis update. The latest RBA data on household debt to income to March reached a new high of 190.1 [1] … … so no surprise to see mortgage stress continuing to rise. Across Australia, more than 970,000 households are estimated to be…

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As credit tightens, gluttonous Aussie banks binge on offshore debt

This article originally appeared on MacroBusiness on 4/7/18. The Australian Bureau of Statistics (ABS) last week released its National Financial Accounts for the March quarter, which revealed a large 4.8% quarterly rise in Australian banks’ gross external liabilities (offshore borrowings), and a significant 9.8% increase over the year. Bonds (+$24 billion) and One Name Paper (+$12 billion)…

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