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SME lending market survey

16 December 2019

The AOFM has indicated its intention to collect SME lending market data in line with its annual call for proposals. This exercise will serve two purposes: to map out the market with greater detail, which will allow the AOFM to implement its investment strategy more effectively; and to establish a baseline for monitoring market development through time.

The AOFM strongly encourages all SME lenders to complete this survey, regardless of whether they are submitting an investment proposal. The AOFM will take into consideration whether lenders have previously participated in this survey when comparing future investment proposals. One of the key opportunities from the ABSF program is to develop the SME lending sector for the benefit of all participants. While this will take time, broad market support for this aim will facilitate more effective change.

Download the SME lending market survey here.

Questions regarding the survey should be directed to one of the contacts listed within the spreadsheet. At the AOFM’s discretion, de-identified questions and answers may be published on this webpage for the benefit of clarifying instructions for all respondents.

Completed surveys should be submitted by email to absf@aofm.gov.au. The deadline for receiving survey submissions is midday (AEDT) on 15 January 2020.

Survey respondents Q&A

Questions and answers relating to the survey are listed below under the headings of the survey questions to which they relate. Survey respondents may still direct questions to the AOFM up until the deadline for submission of midday (AEDT) on 15 January 2020.

13.  Sources of SME asset funding

What would be the expected treatment of retained first loss notes held by the issuer in warehouse facilities?

The expected treatment would be for 13(b)(i) to capture the total drawn amount of warehouse facilities used to fund SME assets, inclusive of funding from retained notes.

62.  Estimated weighted average remaining life (WAL) of loans

Is this intended to be simply a weighted average of the remaining term of the loans or a WAL calculation for each loan based on a zero prepayment (or other) assumption?

We are expecting this to be simply a weighted average remaining life calculation subject to the portfolio prepayment assumptions (for the relevant origination cohort) that your organisation makes in the ordinary course of business. The relevant assumptions can be detailed in the ‘Comments and feedback’ tab for completeness.