Non-Banks and Other Financial Institutions in New Zealand - Industry Market Research Report

Cashing In: Growing Personal Lending and Private Capital Expenditure Have Aided Revenue Growth

The assets of non-banks and other financial institutions have grown relatively steadily over the past five years, but revenue has fluctuated considerably during the period. Non-banks have increased their lending activity and taken advantage of opportunities in mortgage lending. Major banks faced high loan-to-value ratio (LVR) lending restrictions and tighter lending standards, with households turning to non-bank lenders for finance. The Reserve Bank of New Zealand (RBNZ, Tu Putea Matua) previously consistently cut the cash rate, which initially curbed non-bank growth. However, non-bank lenders still managed to grow their loan portfolios due to the strong residential property market and low interest rates driving greater demand for credit. Revenue is expected to rise at an annualised 2.1% to $914.9 million over the five years through 2022-23.

Industry operators primarily provide finance to retail and commercial customers. This includes both deposit-taking and non-deposit taking firms that provide credit to retail, corporate and wholesale customers primarily on a financial-service basis. The industry excludes operating banks.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.