subscribe to our newsletter
ING Direct calls for housing bonds

ING Direct calls for housing bonds

ING DIRECT has called for the development of fixed interest securities that would allow retail investors to participate in funding the Australian mortgage market.

In its submission to the Financial System Inquiry, ING DIRECT notes that the asset base of the Australian banking system is skewed towards residential property assets.

“While this asset class generally performs strongly, it does mean the industry and the economy are vulnerable to downturns in the property market,” ING DIRECT chief executive Vaughn Richtor said.

“We propose the inquiry looks at ways to expand the funding markets to include greater participation from retail customers,” Mr Richtor said.

“Various attempts have been made to establish a retail bond market; however, more is required, especially in the matter of simplified and straightforward documentation.

“The opportunity for retail investors to directly participate in the funding of the mortgage market would stimulate competition and product innovation,” he said.

ING DIRECT believes this could be done in the form of a listed fixed interest security such as a mortgage securities fund or a type of housing bond.

 

ING Direct calls for housing bonds
mortgagebusiness logo

Latest News

The major bank has been scrutinised by the financial services royal commission over its response to a technical error that more than doubled...

APRA’s latest effort to control the mortgage market will force the average Sydneysider to fork out a $369,542 deposit for a median-priced ...

Reserve Bank of Australia governor Philip Lowe has warned that China’s “highly indebted economy” poses a threat to prosperity in Austr...

Promoted Stories

podcast

LATEST PODCAST: Macquarie merger, WA property tax and AMP staff haemorrhage

Do you expect access to credit to get harder this year?