Australia has become the second largest market for alternative lending due to the country’s favorable regulations for lenders.

This is according to new data by financial regulator KPMG, in tandem with the Australian Centre for Financial Studies, which shows that the market grew over 50% within the last year. It’s now following close behind China, the world’s largest market for alternative finance.

The rise of alternative finance in the general Asia Pacific market is also climbing, with the sector logging much more growth in this region than in Western sectors. In Australia’s case, this growth is due to its approach to regulation, according to KPMG.

While its alternative finance market has grown by over half since the last year, the country is a long way off from seeing China’s success: China’s alternative finance market currently accounts for about 99% of the total Asia Pacific alternative finance market, according to the data.

Read more at PYMNTs and the International Business Times.