Bank of Tokyo-Mitsubishi UFJ has held talks with AMP Bank over providing long-term finance under "warehouse" arrangements that may enable the bank to step up its funding of home loans in Australia. The Financial Review
reported on the talks.
The Japanese bank has also approached other mid-tier lenders, the AFR reported.
AMP Bank had A$10.4 billion in home loans at the end of July and a market share of less than one per cent. While the bank has grown faster than system over the last year or two its market share is less than before the financial crisis.
The bank was growing its deposit book at above system last year and early this year, but has recently limited growth.
Most of AMP Bank's housing loans are funded through term facilities such as mortgage-backed securities.
Bank of Tokyo-Mitsubishi UFJ also has "business alliance" with AMP Capital Investors reached in December last year under which it took a 15 per cent stake in AMP's funds management arm.
In November the Japanese bank agreed to buy Royal Bank of Scotland's infrastructure advisory business in Australia
The bank has around $10 billion in assets funded in Australia through entities that report to APRA. The bank has increased its lending - all of it business - by more than a quarter over the last year.