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
ADIs play an important role in the securitisation market. They provide the loans that are securitised, underwrite securitisations, and invest in securitisations. This helps to make securitisation a viable way to raise capital for businesses and investors.