TFF killing non-bank mortgages

Via Banking Day:

Small lenders have hit out at the Reserve Bank’s access rules for its Term Funding Facility, arguing that it is delivering a big funding “free kick” to the major banks at the expense of competition in the home loan market.

Under the A$200 billion funding program set up in March to help banks access cheap funding during the COVID-induced recession, the RBA denied access to non-bank lenders and only allows newly licensed banks with small balance sheets to apply for the equivalent of 3 per cent of their existing loan assets.

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