Bank of China among the keenest property investor lenders in Australia
Small lenders, including the Bank of China, are leading the strong growth in lending to residential property investors, according to the latest Reserve Bank (RBA) credit data report.
The December mortgage data showed balances grew by 7.1%. Owner-occupier mortgage balances grew by 5.6% annually, while investor mortgage balances grew by 10.1%.
The total value of outstanding loans to owner-occupiers is $936 billion and loans to property investors sit at around $487 billion.
The Australian Prudential Regulation Authority (APRA) banking statistics show the lenders who have grown their books above average include the ANZ, NAB, Macquarie Bank, Teachers Mutual Bank, Defence Bank, QT Mutual Bank and bankmecu.
Emerging investment loan lenders include Bank of China, Arab Bank, Defence Bank, Macquarie Bank and the Teachers Mutual Bank.
A Sydney-based investment management company is planning to set up the first privately owned Chinese bank in Australia.
It will raise close to $200 million aiming at a start-up asset book of $1 billion, project manager Howard Ting told Reuters.
"Rather than being backed by a government enterprise it will be backed by private Chinese individuals which makes us the first in the Australian market," Ting said.
The proposed bank's parent company, Australia Capital Investment Group, has yet to apply formally to the regulator.
Recently Glenn Stevens, the RBA governor, noted the opportunities for Australian and Chinese investors to invest in each other's financial markets could grow significantly in the coming years.
"By increasing their familiarity with the RMB as an international transaction currency, local financial institutions, investors and firms are likely to be better placed to take advantage of these future opportunities as they arise," Stevens told the Bank of China (Sydney) on the official launch of RMB clearing facilities in Sydney.
"This is a further important step in what continues to be a fascinating journey."