Almost six years after the collapse of the United States subprime mortgage market triggered the global financial crisis, risky lending is having a revival in Australia.
The Commonwealth Bank, which owns ASB in New Zealand, and National Australia Bank, which owns BNZ, have helped the non-bank lender, Pepper, find investors for $A500 million worth of so-called non-conforming home loans.
These are largely loans made to people with poor credit records or where the repayments are demanding.
The Reserve Bank of Australia has warned about the risks of banks loosening their lending standards.
A banking analyst, Martin North, says it marks an important change in Australia's mortgage market.
Pepper Australia says its residential mortgage-backed securities issue is Australia's biggest since the global financial crisis.
