Overall, we view Heritage as a highly capitalised and well-funded issuer. We have some concerns regarding loan book diversification and with the loan expansion plan (likely to be funded via securitisation vehicles), but a large proportion of this risk is mitigated by the RBA’s committed liquidity fund and Heritages’ experience in this market. As with other regional banks we expect this year will be a favourable period as lending growth increases through intermediated channels. Our reports for Heritage Bank:
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