Non-bank sector booming

KPMG head of banking and finance John Kensington

KPMG’s latest Non-Bank Financial Institutions Performance Survey reveals that the sector saw a 10.2% profit increase to $216.77 million in the year to 30 September 2017.

Non-bank lenders - which includes mortgage trusts, credit unions and finance companies – also saw a 13.92% growth in gross lending.

Within that, non-bank mortgage lending jumped up to $2.5 billion from $1.61 billion over the last year.

KPMG head of banking and finance John Kensington says that a key driver of the sector’s strong performance has been the slowdown in lending in the mainstream banking sector.