RBA Market Advice – Eligible Securities
Following reports that there have been retail loans made by Australian lenders which were obtained fraudulently using false documents (including false income statements), the Reserve Bank of Australia (RBA) reminds RITS Members and Information Providers to the RBA’s Securitisation System of relevant obligations to the RBA relating to asset-backed securities eligible for use in the RBA’s domestic market operations. In particular:
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Information Providers that report data (including loan level data) to the RBA in respect of asset-backed securities eligible for use in the RBA’s domestic market operations:
- represent and warrant to the RBA that the data reported to the RBA (including loan level data such as borrower income) is in all material respects correct, complete, up-to-date and accurate and not misleading or deceptive; and
- undertake to promptly inform the RBA if they become aware of any mistake, inaccuracy or other defect in the data and, as soon as reasonably practicable thereafter, correct such mistake, inaccuracy or other defect by informing the RBA of the error and providing the RBA with corrected data,
as set out in clause 3 (Data) of the RBA’s Securitisation System User Agreement.
- ADI sponsors of self-securitisations eligible for use in the RBA’s domestic market operations must inform the RBA prior to any self-securitisation transaction changes becoming effective; for this purpose, a self-securitisation transaction change includes (without limitation) any waivers of breach of obligations or representations (including compliance with loan eligibility criteria): see Condition 16f of the RBA’s eligible securities criteria available at https://www.rba.gov.au/mkt-operations/resources/tech-notes/eligible-securities.html.
If you have any questions, please contact the RBA’s Eligible Securities Team at eligible_securities@rba.gov.au.
Financial Markets Group
Reserve Bank of Australia
31 March 2026