Foreign banks have plugged the debt funding gap created by domestic lenders, with their exposure to Australian commercial real estate rocketing by 117 percent over the past two years. Their loan exposures have now passed A$43 billion, giving them a market share of 16.2 percent as they take advantage of favourable conditions. By comparison, lending by domestic banks in the Australian market reduced by $A6.3 billion over the past 18 months as regulatory pressures and higher risk weighting for commercial real estate take their toll.