Home loan approvals down -16.5% year on year

APRA yesterday released its quarterly authorised deposit-taking institution (ADI) statistics.

The data showed that while the number of housing loans for ADIs with a home loan book greater than $1bn was up 1.2% year on year, new home loans approved in the quarter were down -16.5%, falling from $86.8bn in March 2018 to $72.4bn in March 2019.

The report also revealed that in the last year, the customer owned banking sector’s housing loans have increased by 8% while the major banks’ grew by just 2.6%.

Australia’s customer owned banks now hold over $119bn in assets, up 1.6% from the previous quarter. Conversely, the major banks total assets declined by 0.4% in the March quarter.

“The latest figures from APRA paint a clear picture of a sector that is continuing to grow as more Australians begin considering who it is they choose to bank with,” said Customer Owned Banking Association CEO, Michael Lawrence.

“Consumers are sending a very clear message to the major banks; either put our interests first, or we’re going somewhere that will. They know a leopard can’t change its spots, and that’s why they’re taking their banking elsewhere.”

According to the APRA data, consumers are also choosing to place their deposits with customer owned banking institutions, the sector showing a 6.5% year on year increase.

“It’s important that regulators create an environment where challenger institutions can grow and compete with the major banks. With greater competition comes greater customer outcomes,” said Lawrence.