Banks win increased share of home loan market
The slow down in the rate of growth in housing lending in Australia reported by the Reserve Bank of Australia data is not as evident in the parallel data published by the Australian Prudential Regulation Authority. The RBA data on financial aggregates shows that lending for housing increased by 11.9 per cent in the 12 months to May 2005. This is the lowest rate of growth in housing lending since the peak in the growth rate, at 21 per cent, in late 2003 and early 2004. APRA data on the assets of banks for May shows that housing loans managed by the 51 banks monitored in that APRA series, increased by 14.4 per cent in the year to May 2005. On this basis the all-banks share of housing credit increased to 88.2 per cent at May 2005, up from 86.7 per cent at May 2004. The APRA data shows that three banks are continuing to gain market share at a rapid rate: Adelaide, ING and Members Equity.