This paper examines recent work by the Reserve Bank of Australia (RBA), financial sector representative and regulatory bodies and academics focusing on the extension of housing finance in Australia over the past two decades. It aims to explore how the financial sector, primarily Australia’s four main banks and a class of nonbank mortgage lenders, was able to significantly expand the scale of housing finance delivery during this period. It seeks to examine a range of factors, for example, financial deregulation, increased competition amongst mortgage lenders, innovation and relaxation in lending practices, and how these factors affected the way mortgage lenders 'managed the risks' that resulted from this new form of lending.
Housing Finance International,
(Spring 2012), pp. 41-46