Australia’s non-bank lending industry is continuing to grow with expectations CRE private credit lending alone will double over the next 10 years. Our Managing Director, Adam Kaye was sought for his views by The Urban Developer on the need for regulatory intervention, emphasising the importance of a balanced and considered approach, noting that competitive forces and the naturally prudential dynamics of Australia’s wholesale capital markets already provides a level of self-regulation not necessarily reflected in other jurisdictions.

“The view we take is that we first want to make sure that APRA is doing its job of understanding this sector and this market properly,” Kaye says. “It needs to ensure that it doesn’t risk over-regulating, or regulating prematurely a sector that really needs to establish itself, before intervention undermines it and denies liquidity to a sector of the market that is in critical need of it. We think the first obligation of APRA is to properly map the market and understand its composition with a view to understanding the weight of regulation required to ensure the orderly functioning of the market”

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