Dr. Mark Cassidy:

We have a combination of bank and non-bank lending. I do not mean equity finance. We see that non-bank lenders are more likely to lend to riskier borrowers, to smaller ones and to ones which do not have as much of their own equity or other equity to put into that.

They now represent 30% to 40% of overall lending to small builders in the real estate. That sector has been significantly hit over the past couple of years by conditions in global financial markets. Their funding costs are based on borrowing from international markets. They have become much more expensive and that has become more difficult for them. This is riskier lending for banks,. As a result, they are required to hold more capital against it, which makes it more expensive for them. Generally, they tend to not want to lend more than 60% to 70% of the value of the overall loan and, therefore, what is required is that additional equity tranche, which has become so difficult to get. The evidence is that the banks are lending, and they are willing to lend but the nature of the lending and the fact that it is more risky suggests that we also need the non-bank lending and the equity finance there. That is where we think the focus needs to be. Ultimately, it is the bank's own commercial decision. They are making commercial decisions about the viability and the riskiness of that lending. That is what governs their behaviours.