FirstMac builds stake in The Rock

Non-bank home loan funder FirstMac disclosed yesterday that it lifted its stake in The Rock Building Society to 8.5 per cent over recent days, from around five per cent.

In a statement, FirstMac described itself as "supportive of the new board and management of the The Rock".

John Matthews took over as chair of The Rock earlier this year, following the death of the long-serving incumbent. A board review then led to the selection of a new CEO, Stuart McDonald.

FirstMac, a funder with more than 25 years in the mortgage market, has a long-term interest in converting its business into, or merging with, a niche deposit-taking institution.

It confirmed this aspiration in a submission to the Senate economics committee inquiry into banking. In its submission, FirstMac drew attention to the potential block on banking competition from the cap on shareholdings in banks of 15 per cent.