An Authorised Deposit-taking Institution (ADI) is a financial institution that is authorised by the Australian Prudential Regulation Authority (APRA) to accept deposits from the public. ADIs are subject to strict regulations designed to protect depositors' money.
In securitisation, ADIs can play a number of roles. They can:
- Originate loans. ADIs can originate loans, such as mortgages, that are then securitised.
- Underwrite securitisations. ADIs can underwrite securitisations, which means that they can assess the risks involved in a securitisation and provide a guarantee to investors.
- Invest in securitisations. ADIs can invest in securitisations, which means that they can buy the securities that are created when a securitisation is issued.
Here are some examples of ADIs in Australia that have been involved in securitisation:
- Banks such as the Commonwealth Bank of Australia, NAB, ANZ, and Westpac
- Building societies such as Housing 1st and First Home
- Credit unions such as CUA and SCU
Securitisation can also allow ADIs to transfer credit risk to other investors, which can reduce the risk of losses for the ADI. Here are some additional details about ADIs in securitisation: ADIs are banks, building societies, and credit unions that are authorised by the government to accept deposits from the public. ADIs are often involved in securitisation transactions as originators or investors. Securitisation can allow ADIs to free up capital, transfer credit risk, and invest in other assets. ADIs are subject to certain regulations and requirements, such as capital adequacy requirements and liquidity requirements.