Big super overtakes the banks as Australia’s biggest corporate funder
The seismic shift in domestic funding holds significant consequences for Australia as superannuation swells beyond $4.5 trillion.
The $4.5 trillion superannuation sector is now a bigger source of funding for corporate Australia than the banking system, according to new research from the industry’s peak body.
The Association of Superannuation Funds of Australia (ASFA), which represents retail and not-for-profit ‘industry’ super, says APRA-regulated funds and self-managed super funds (SMSFs) now provide 44 cents out of every dollar of funding for Australian companies, versus 36 cents from the banks.
The calculation leans heavily on the super sector’s investments in ASX listed equities, which technically are a financial claim on a company in exchange for capital.
The data underscores the rapid growth of super, which across the whole business sector (including small businesses) now represents 39% of accumulated domestic funding, almost double its level of 23% two decades ago. On that broader measure, banks still represent the biggest line of funding at 44%.
