[Updated] ANZ Bank's share of the mortgage market continued to slide in the September quarter although a marked drop in charges for bad loans boosted profitability.

Fisher & Paykel Finance has experienced a revival in demand in the securitisation market in recent months, although it still isn't back to pre-crisis levels, says managing director Alastair Macfarlane.

After running down its mortgage book for most of the last decade, HSBC has started to compete for business again.

Kiwibank is still growing its mortgage book at a much faster pace than its market share but its momentum continues to wane and its profitability is under pressure as bad loans mount.

Fisher & Paykel Finance was the star of parent company Fisher & Paykel Appliances' first-half results, accounting for 73.6% of group operating earnings.

The mortgage market would have grown by about the same amount through the global financial crisis (GFC) even if the government-owned Kiwibank hadn't existed, says David Tripe, head of banking studies at Massey University.

The proposed “heartland bank” will become the biggest of the remaining 40 or so non-bank deposit taking (NBDT) institutions while it tries to achieve a banking licence.

The proposed “heartland bank” highlights the challenges the remaining non-bank deposit takers (NBDT) face following the collapse of more than 50 of them since 2006.

The proposed merger between Pyne Gould's Marac, the NZAX-listed Canterbury Building Society and Southern Cross Building Society looks to be a no-brainer decision for their respective investors but there will be further challenges after the merger.

ASB Bank's mortgage book shrank for the second successive quarter in the three months ended September but its profitability surged as charges for bad loans disappeared.

Early voting on the 'heartland bank' merger proposal among Marac debt holders is running at about 90% in favour, says Craig Stephen, chief investment officer who will become treasurer of the new bank.

Equitable Mortgages has already raised $14 million through its latest prospectus and has now cut its interest rates to limit its funds inflow.

Sub-prime specialist lender Bluestone has lost its bid to either have Commerce Commission proceedings against it over a fee it charged thrown out of court or to gain a summary judgment against the commission.

Floating mortgage rates are unlikely to rise for several months after Reserve Bank governor Alan Bollard confirmed market expectations by leaving interest rates unchanged.

A stuttering economic recovery and strong New Zealand dollar will mean Reserve Bank governor Alan Bollard leaves interest rates unchanged, economists says.

It's probably no coincidence there's a rush of corporate debt issues hitting the market just as South Canterbury Finance (SCF) investors are about to receive their cheques.