NewsBite

Responsible lending

October 2024

Dan Gallen is the chief investment officer of Pallas Capital.

Goldman Sachs refinances Pallas Capital’s $500m facility

It comes after Pallas in July lured Westpac NZ to refinance a $NZ400 million facility focused on Kiwi small-to-medium enterprise borrowers.

  • Sarah Thompson, Kanika Sood and Emma Rapaport
Major banks have split on prudential policy settings.

Banking regulator rejects calls to cut home loan interest rate buffer

APRA chairman John Lonsdale has hit back at the Australian Banking Association at a parliamentary hearing on Friday.

  • James Eyers
The lobby group for the banks says a lower serviceability buffer will allow first-time buyers to borrow more.

Calls to reduce 3pc home loan bank buffer test

The Australian Banking Association says more people will be able to access the property market if the prudential regulator is more flexible.

  • James Eyers and John Kehoe
The private credit sector needs more scrutiny, given the information gaps facing regultors.

Revealed: How much Australia’s private credit sector is really worth

The industry’s risks to Australian financial stability are low, the RBA says. But plenty of information gaps remain, and regulators are playing catch up.

  • James Thomson
Jon Adgemis and his partner Megan MacKenzie. Five of Adgemis’ former venues are being put up for sale.

Five of Jon Adgemis’ former venues to hit the market

Colliers have been appointed to market a large chunk of the former KPMG dealmaker’s pub empire, Public Hospitality.

  • Primrose Riordan
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Delta’s Vales Point coal power station in NSW supplies 4 per cent of generation in the National Electricity Market.

Cashed-up NSW coal power owner jilted by banks

Sev.en Global’s Delta has requested an urgent change to the rules for the electricity market after being unable to extend a bank guarantee because of its coal links.

  • Angela Macdonald-Smith
NAB has told Senators APRA serviceability buffer could be reduced for first time borrowers.

NAB calls for lower home loan buffer to help first-time buyers

In a submission to the Senate inquiry, NAB says dropping HECS-HELP debt from serviceability calculations for first home buyers would boost borrowing capacity.

  • James Eyers
ANZ boss Shayne Elliott says the regulations assume applicants “earn today’s income forever”.

Banks blocked from factoring in rising income when assessing loans

A bank boss says it is “absurd” that regulations prevent expectations that a young, professional borrower’s income will rise after they apply for a home loan.

  • Updated
  • James Eyers
CBA chief executive Matt Comyn at the Trans-Tasman Business Circle lunch in Sydney on Tuesday.

Buffer or blocker? Why APRA’s serviceability rule is so controversial

CBA boss Matt Comyn has defended APRA’s prudential settings from political attacks, saying housing policy must focus on supply.

  • James Eyers
Australia’s three credit bureaus have become two.

Credit score agencies combine, creating Australia’s newest duopoly

Experian has completed its $820 million acquisition of Illion, which Experian’s CEO says will help banks assess credit risk more dynamically.

  • James Eyers

September 2024

ANZ's share trading platform app is blocked for many customers with no resolution in sight.

Open banking limps to life with ANZ customers seeking full picture

ANZ is the first major bank to use open banking to aggregate multiple accounts through its app. Ultimately, it will be used as a tool to lure new customers.

  • James Eyers
Private credit is funding 11 per cent of business lending, even as stress rises in high-exposure areas like construction and novated leases.

Private credit creeps past 10pc of business lending, RBA says

The rapid take-off in opaque private credit lending has prompted concerns in some pockets of the financial system.

  • Lucas Baird
Steve McCann, new CEO of Star Entertainment Group, faces a titanic struggle.

McCann’s first trick at Star is to buy time, next he needs performance

Star Entertainment’s board hired Steve McCann for his deal nous. He had to call on it sooner than we all expected.

  • Anthony Macdonald

August 2024

Construction in the Melbourne CBD. Oak Capital, which is based in the city, lends against construction projects as well as commercial property.

Melbourne private capital firm lands in ASIC’s line of sight

Oak Capital describes itself as a “mid-tier” non-bank lender and specialises in real estate financing. The regulator has stepped up it scrutiny of the sector.

  • Primrose Riordan and Aaron Weinman
David Lyall is the managing partner of Millwood, a major non-bank lender.

Overdue loans swamp private credit giant lending to Sydney’s wealthy

The local lender has previously written loans for some of Sydney’s most colourful businessmen. Growing arrears aren’t always made clear to its investors.

  • Primrose Riordan, Aaron Weinman and Jonathan Shapiro
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ING’s head of wholesale banking Andrew Bester is in Australia while it’s quieter in Europe.

Euro summer madness is making markets look extreme

It’s easy to forget what day-to-day life looks like on the other side of the world at the moment. But it is an important part of the market sell-off story.

  • Anthony Macdonald

July 2024

Barrenjoey has made suggestions to help young Australians sustainably enter the housing market.

Trim mortgage ‘risk weights’ to help first home buyers: Barrenjoey

Barrenjoey called on APRA to allow banks to reduce mortgage “risk weightings” for first-time borrowers and for ASIC to drop HECS debt from responsible lending.

  • James Eyers
Cash Converters said retail store revenue increased by 11 per cent in 2024 after 600,000 transactions took place in its pawn shops.

Booming Cash Converters revenues point to squeeze on the poor

The ASX-listed pawnbroker told investors the increase was partly tied to “mainstream finance” being “more difficult to access” for many of its customers.

  • James Eyers
Beaconsfield is confident in the NQH wealth software portfolio.

Beaconsfield says Keystone demands forced receiver appointment for NQH

The US investment manager says it was forced to appoint receivers after Keystone Asset Management demanded immediate repayment of a $15 million unsecured loan.

  • Max Mason
Andrew Griffin, the chief executive of Balmain, is targeting companies that have failed ESG tests for his latest private credit fund.

This private credit fund is going big on companies failing ESG tests

Balmain Corporation said it had considered calling the strategy a “Vulture Series” – but decided naming it after a different bird of prey was more appropriate.

  • Primrose Riordan

Original URL: https://www.afr.com/topic/responsible-lending-1mqx