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Non-bank sector still recovering: FirstMac

by Staff Reporter8 minute read
The Adviser

Jessica Darnbrough

The non-bank sector is starting to push for more market share, but there is still a long way to go, FirstMac’s Kim Cannon has said.

According to Mr Cannon, while funding has improved slightly since the heart of the GFC, the non-bank sector is not out of the woods entirely just yet.

“Securitisation markets are starting to thaw, which is good news for the non-bank sector. That said, we have still not completely recovered and I believe it will be some years before we can expect to generate the volumes we did prior to the GFC,” Mr Cannon told The Adviser.

“Are we better placed than we were three years ago? Yes. Are we out of the recession? No. In the last six to nine months we have started to see the non-bank sector penetrate the market once again, but there is still a long way to go.”

According to AFG data, non-bank volumes continue to climb quarter on quarter, suggesting the sector is making inroads towards recovery.

The non-banks currently write approximately 12.5 per cent of all new home loans – up from 7.5 per cent this time last year.

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