Implementation of a $15 billion fund to support business and consumer lending

 20 March 2020

  • The Government has announced that it will introduce legislation to establish a $15 billion fund and direct the AOFM to provide support for non-ADI and ADI lenders through securitisation markets.
  • Support will comprise direct investments in primary market securitisations and warehouses financing a broad range of lending in mortgage, consumer and business lending.
    • Acceptable underlying collateral will extend beyond residential mortgages, and will include asset backed financing and SME lending.
  • The AOFM will invest in rated term securitisations in the primary market and in rated and unrated financing of securitisation warehouses.
    • The AOFM will give preference to proposals that expand existing funding capacity.
  • The AOFM has worked with the RBA and Treasury to design a program to provide support primarily (but not exclusively) within the non-ADI market that complements the RBA’s recently announced Term Funding Facility.
    • The AOFM will work with ADI and non-ADI providers of warehouse finance to facilitate the flow of credit to smaller lenders.
  • More information will be released upon passage of the relevant legislation. The AOFM understands the urgency of this task.
  • The AOFM would like to acknowledge the assistance of the Australian Securitisation Forum in channelling useful information that has underpinned the AOFM’s deliberations.

AOFM LOGO
 

White Linkedin Logo
Follow us

Contact us

Stay Informed: Subscriber email

Phone: +61 2 6263 1111

Email: enquiries@aofm.gov.au

Postal address

Australian Office of Financial Management,

Level 3, Treasury Building, Newlands Street,

PARKES ACT 2600

With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented on this site is provided under a Creative Commons Attribution 4.0 International license as detailed in our copyright statement.