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ISCOVER
Staff Reporter
Four out of five brokers believe the government should have injected more into RMBS.
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Earlier this month, the treasurer announced the government would increase its total investment in the RMBS market from $16 billion to $20 billion in a bid to stimulate competition between lenders.
But despite this further cash injection, almost 80 per cent of brokers said it was not enough.
According to The Adviser latest weekly straw poll, just 20.3 per cent of the 123 respondents said the government’s $4 billion injection was enough.
FirstMac’s chief executive Kim Cannon was one such respondent.
Speaking to The Adviser at the time of the government announcement, Mr Cannon said the amount was not concerning; rather anything that is done to support the non-bank sector should be applauded.
“Any support further enhances competition between lenders, which is a good thing for us and the industry as a whole,” he said.
Mr Cannon said as the financial markets start to improve, non-bank lenders will not be forced to rely on support from the government or the Australian Office of Financial Management.
“When this happens, the amount the government injects into the RMBS market will no longer be an issue.”
