By guest contributor Ken Atchison, CEO, Atchison Consultants
Banks are being restrained in their ability to lend while less-traditional lenders expanded their operations. A report from FAST, which is a NAB-owned mortgage aggregator, stated “Lenders owned by the four major banks saw the market share of business lending and equipment finance fall from 77% to 67% in the 2019 financial year. Non-bank lenders more than doubled their share from 5% to 11%”.
This trend was established before the Hayne Royal Commission.
Data released at end October 2019 shows private credit growth in Australia continued to be very slow (Chart 1).
Chart 1 – Credit Growth
However, lending for owner-occupied housing is the one sector where growth rates have held up (Chart 2).