The government’s continued support of Australia’s credit markets has resulted in a flow of funds to non-bank financial institutions which has ultimately allowed them to actively compete in the lending markets, according to the Australian Securitisation Forum (ASF).
The government’s extension of the Australian Office of Financial Management’s (AOFM) investment in the securitisation market has assisted smaller lenders, small businesses and households, ASF said.
ASF chief executive Chris Dalton welcomed the government’s response to concerns regarding dwindling competition in the Australian lending market.
“The extension and enhancement of the AOFM scheme shows that timely, targeted and temporary safety nets are critical to ensuring the continuation of a broad and competitive lending landscape that took two decades to build,” he said.
“The government’s strategy in this area is to be welcomed because it means the positive momentum that has become apparent in recent months can be maintained.”
The recovery of broader financial markets must be encouraged as a plank of a sustained economic recovery, Dalton said.
“The government has duly recognised this by supporting securitisation markets, which are an essential plank of modern, global economies,” he said.
ASF represents more than 120 organisations including Australia’s leading banks, non-bank mortgage providers, investment managers, investors, ratings agencies and others operating within the sector.
