Kiwibank made little difference to mortgage market growth: Tripe
Kiwibank has dominated mortgage lending by registered banks since the December quarter of 2008 and, although its hectic growth has slowed in recent quarters, continues to lend at a much greater rate than its market share.
"Kiwibank is getting them (mortgages) because they've made the decision they want that business," Tripe says. In Kiwibank's absence, the mortgages it has been writing would have been shared around the other banks, making little difference to the overall amount of mortgages written, he says.
Excluding SBS Bank, which became a registered bank in October 2008, mortgage lending by registered banks rose $0.97 billion in the December 2008 quarter and Kiwibank accounted for a staggering 89.7% of that.
In the nine months ended June 2009, Kiwibank accounted for 45.9%, or $2.27 billion, of the $4.95 billion in mortgages written by registered banks. Over the following year, it accounted for 29.4% of the $6.34 billion written.
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