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By: Jessica Darnbrough
The recent improvement in the securitisation market could help the pendulum swing back in favour of smaller lenders, the Reserve Bank’s assistant governor Guy Debelle has said.
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According to Mr Debelle, the market share of the major banks has “topped out”.
Speaking to an audience of mortgage brokers and financiers in Melbourne earlier this week, Mr Debelle said he was optimistic about competition returning to the market.
“Most of the loans you guys have been doing have gone to the major banks," he told the audience.
"My guess is that (the major banks' share) has topped out.
"As securitisation comes back, it does make the non-banks and regional banks more competitive."
When asked whether or not increased competition would trickle over into home loan pricing, Mr Debelle said he was unsure.
"I'm not sure there will necessarily be lower home loan rates," he said.
"It's not going to put downward pressure on mortgage rates but it will prevent upward pressure."
Mr Debelle's bullish outlook for securitisation comes on the bank of announcements by Bendigo and Adelaide Bank and Bankwest to launch residential mortgage-backed bond issues.
On Wednesday Bendigo Bank announced it was expanding its latest securitisation program by $450 million to $1.1 billion because of strong demand.
Similarly, Bankwest announced today its plans to launch a $620 million RMBS bond deal.
