Young go for new cars, not houses

PHOTO: 123RF – Banks are turning away loans they might previously have granted.

Banks taking a harder line on loans have boosted credit unions, finance companies and other non-bank lenders this year.

KPMG’s latest non-bank financial institutions performance survey shows a 10.2 per cent increase in net profit for the sector this year, to $216.67 million. Loans increased 13.92 per cent.

John Kensington, KPMG’s head of banking and finance, said an important driver had been slower lending from mainstream banks.

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