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ISCOVER
Staff Reporter
Wholesale funders have seen their market share fall to the lowest level since the mid 90s.
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According to data from the Australian Bureau of Statistics, wholesale funders now make up just 1.9 per cent of the lending market – down from 13.7 per cent recorded in March 2007.
In contrast, Australia’s major lenders have seen their market share grow to 90.2 per cent – up from 79.3 per cent before the global financial crisis.
The freeze in the securitisation markets hurt the wholesale funders and forced their biggest consumers – the non-bank lenders – to diversify their funding sources.
Resi Home Loans diversified its funding from Advantedge and ING to FirstMac and Adelaide Bank.
But the news isn’t all bad.
FirstMac managing director Kim Cannon told The Adviser that the securitisation markets were starting to open up once again, which is good news for both wholesale funders and the non-bank sector.
