Business

Two leading economists have claimed that APRA’s lending curbs are here to stay and have flagged a strong possibility that more macro-prudential measures will be introduced this year.

This is an interesting article in relation to the ever-evolving P2P (Peer To Peer) lending models which are slowly growing around the globe. Initially, new technology which automates and systemises lending, and in particular connects investors and borrower through such technology, may seem impressive. After all, who doesn’t like a new blue-sky technology story? The basics of sound lending, and investment for that matter, however, always come back into the fore. Regulation of both the investment and borrowing sides of these models must be as rigorous as those applied to “traditional/non-fintech start up” participants. There may be more articles like this in the near future.

Dean Koutsoumidis, managing director of non-bank lender Equity-One, tackles the changes and challenges affecting commercial lending, and explains why brokers shouldn’t be afraid of having frank discussions with lenders.

In an era where digital channels and fintech are shaping the future of financial services, one non-bank lender is keeping things traditional by focusing on simple products and quality service.

When it comes to commercial lending, brokers need to look beyond the rate. Short-term lender Equity-One works with brokers to provide solutions-based offerings to their small business customers

Remarkably low inflation figures recently released paint an interesting picture. Property prices have not abated in a material way, credit through the banks is increasingly challenging to acquire, and Chinese buyers are finding it tougher to move their funds offshore.

Policy makers sure have their work cut out for them in this environment. Liquidity is the saviour here, for both buyers and lenders. Whilst official cash rates have dropped, non-bank pricing for funds has slowly edged upwards due to the demand, yet still is a viable option for many.

Funding constraints affecting Banks are likely to continue, if not increase during the short term.
A senior economist has predicted that APRA is likely to add further directives on banks’ lending standards to help cool Sydney and Melbourne’s property markets “before they get totally out of hand”.
Shortly after the release of the RBA Review last month, which warned that the risk of oversupply in some capital city markets is nearing, the Australian Prudential Regulation Association announced a series of changes to its mortgage lending guidance, particularly around serviceability requirements.

Bank lending poised to tighten further. Demand for credible alternative finance options is likely to increase in the short term.

One of Australia’s most respected economists says there is a “good chance” the prudential regulator will crack down on a recent lift in property investor activity by announcing stricter lending conditions for banks.

Last week’s housing finance figures for the month of June showed a 3.2 per cent increase in investor loan commitments following a 3.9 per cent surge in May.