Thin Underwriting, Pushy Practices: Banks’ Gripes on Private Credit

The appetite to lend is stronger than ever.

About 97 per cent of lenders surveyed in Stamford Capital’s Debt Capital Markets Survey recently said they were looking to grow their loan book this year. 

The challenge for traditional banks is the private credit market is “eating their lunch”, according to Stamford Capital managing director Peter O’Connor.

In this exclusive webinar, O’Connor unpacks the challenges within the lending market and the growth opportunities being targeted. 

Click on the image to watch this exclusive webinar.

O’Connor said there was concern among traditional banks about “pushy practices, lack of compliance and thin underwriting” in the private credit space. 

He said the private market got a “speeding ticket in the form of an ASIC review which is now being undertaken”.

“Loan book growth in the bank space has come under immense pressure while private lending in Australia has exploded from $700 million in assets five years ago to nearly $1.9 billion today,” he says. 

O’Connor says there is a sentiment among the banks that the private market is “eating their lunch”.

To watch this webinar click here.