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.
