The size and growth rate of Australia's non-bank lenders are raising some analysts' eyebrows.

Incentivised by interest rate cuts and a record-breaking property market , non-bank lenders are scrambling for a greater slice of the loan pie.

And it is the sector's growing interconnectedness with the broader, prudentially regulated financial system that is at the heart of policymakers' concerns.

Sizeable non-bank sector

The Australian financial system collectively holds about $14 trillion in assets, amounting to about 500 per cent of GDP.

It is unclear exactly what proportion of this figure is held by the non-bank sector, but the Reserve Bank noted in a 2024 paper that "Australia's NBFI [Non-Bank Financial Intermediary] sector is broadly comparable in size to other advanced economies" at

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