BNK Banking Corporation has taken the unusual step of buying loans from its warehouse and putting them on its balance sheet. BNK has had a A$500 million residential mortgage securitisation warehouse with Goldman Sachs since 2021. It announced yesterday that it has bought $150 million of “high margin” loans from the warehouse, which will increase its loan book to $1.3 billion. The loans are floating rate, with an average current loan-to-valuation ratio of 64.4 per cent, a maximum LVR of 80 per cent and a maximum loan balance of $2.4 million. A spokesperson for BNK said the bank is well capitalised and has a lot of liquids, and so is in a good position to take the loans onto its balance sheet. The move will give it more funding capacity in the warehouse. The fact that BNK is buying the loans rather than arranging a securitisation may suggest that it would not be easy for a new issuer to enter the public securitisation market now.