Smaller lenders, including Bank of China, are leading the strong growth of loans to investors of residential properties, according to the Reserve Bank (RBA) credit data.
The data showed mortgage balances grew by 7.1% in December. Owner-occupier mortgage balances grew by 5.6% annually, while the investor mortgage balances grew by 10.1%.
The total value of outstanding loans to owner-occupiers is $ 936,000,000,000 and loans to real estate investors feel around $ 487 billion.
The Australian Prudential Regulation Authority (APRA) Bank statistics show lenders that have grown their books over the system include ANZ, NAB, Macquarie Bank, Teachers Mutual Bank, Bank of Defense, QT Mutual Bank and Bankmecu.
Emergence of the investment loan lenders include Bank of China, Arab Bank, Bank of Defense, Macquarie Bank and Bank Mutual Teaching.
An investment management company based in Sydney is planning to establish the first privately owned Chinese bank in Australia.
It will raise close to $ 200 million with the aim of an initial active workbook $ 1 billion project director Howard Ting told Reuters.
"Instead of being backed by a government company that will be backed by Chinese private individuals who make us the first in the Australian market," Ting said.
Parent company of the proposed bank, Australia Capital Investment Group, has yet to formally ask the regulator.
Recently Glenn Stevens, governor of the RBA, noted the opportunities for Australians and Chinese investors to invest in financial markets of others could grow significantly in the coming years.
"By increasing their familiarity with the RMB as an international currency transaction, local financial institutions, investors and companies tend to be better able to exploit these future opportunities that may arise," Stevens said the Bank of China (Sydney) at the official launch of the RMB clearing systems in Sydney.
"This is an important step in what remains a fascinating journey step."
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