Australian banks hope to turn credit cards into cash
SYDNEY (REUTERS) - Australia's financial regulator may liberalise the country's structured finance market, making changes that could open the way for banks to securitise credit card debt for the first time.
The move, which could happen as early as next year, would create new funding sources for Australian banks and bring diversity to a market dominated by mortgage-backed securities.
Worth A$110 billion (S$127 billion), Australia's structured finance market is among the five largest in the world, but unlike Europe and the United States, Australia has yet to see securitisation of credit card debt.
That could soon change as the Australian Prudential Regulation Authority (APRA), one of the world's toughest regulators, is considering allowing the use of master trust structures.