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Banks sell the same derivative many times over. If it falls over you may have hundreds of counterparties to pay. In the normal world the losses aren't big enough to cause a system problem when something major comes along then a problem can blow out to astronomical proportions. AIG for example...

Derivatives are a circle jerk. Banks sell and trade derivatives while they also use derivatives to hedge each other. AIG went tits up because it couldn't cover its position. When things go south there's no way a broke bank can cover a broke bank hence the last GFC. No one knew who was cashed...

That's not the rate of lending but what is currently on the loan book. The rate of lending (investment) is around 48% currently. The risk here is that a sentiment change in such a large proportion of the buying market would have a fairly substantial impact on prices.

Investor growth continues as a share of total lending and to be expected a share of the total book value. $1.315T of debt on bank books is troubling. Throw in $15T in derivatives and things look even more worrying. But then there's the punters out there that keep echoing the govt/banking BS...

Another Bumper Month For Home Loans By Martin North | January 30, 2015 | Economics and Banking APRA just released their monthly banking statistics, which provides a view of lending and deposit portfolios from the banks (ADI?s). Overall home lending by the banks rose $9.12 billion to $1.315...