Guy Debelle the Assistant Governor of the Reserve Bank of Australia said in a securitization conference in Sydney today that the RBA expects to reduce the amount of residential mortgage backed securities accepted as collateral from Australian banks for repurchases agreements. Yet, Debelle added that RMBS will remain eligible collateral.

Debelle said that securitization will remain an important part of the financial market and he expected securitization not to be as large as it was in the last few years especially after the consequences of the financial crisis, while he added that securitization will continue to be a strongly performing asset.