Banks' tighter lending standards in light of the Royal Commission have also had an effect on their lending activity over the past year. Not only did this change in the banks' behaviour contribute to the strong growth of non-bank lending, it may also have contributed to the shift in the nature of the collateral underlying the nonbank securitisation deals.
We can use the Reserve Bank's Securitisation Dataset to see three key changes. [5] First, the share of investor loans in non-bank securitisations has increased over the past few years (Graph 11). Second, their share of interest-only loans has remained relatively high, in contrast to the share of interest-only loans in banks' securitisations.