The Government has provided $15 billon to the Office of Financial Management (AOFM) to invest in structured small business markets used by smaller lenders. This will support smaller lenders who won't have access to other programs put forth by the RBA.
Further Initiatives
The government has provided the Australian Office of Financial Management with $15 billion to invest in structured finance markets used by smaller lenders, including non‑Authorised Deposit-Taking Institutions (Non-ADI) and smaller Authorised Deposit-Taking Institutions (ADI).
The AOFM will be making direct investments into primary market securitisation by these lenders and in warehouse facilities. These investments will not be restricted to residential mortgage backed securities but will also include asset purchases that support small businesses and consumer lending.
The program will support smaller lenders that do not have access to the RBAs term funding facility. Supporting access to funding, competition and in turn reduce borrowing costs for businesses.
More information will be provided when it becomes available.
Links to Government Resources
FAQs
The government and the RBA have enacted a number of initiatives to support banks during the Coronavirus pandemic including a $15 billion investment into structured financial markets and access to a $90 billion term funding facility.
