Posted: February 4th, 2017 | Author: Michael Courtenay | Filed under: Business and Economy | Tags: AUSTRALIA, Bank, Banking, Business News, consumer-finance, regulation, Small Business | Comments Off on REPORT: Small Business Inquiry Finds Australian Big Bank Practices Unfair
I’ve banked with a small bank – Bendigo Bank – since my return to Melbourne 8 years ago. Australia’s big banks have plenty of critics, and now they can add the Small Business Ombudsman to that fast growing list.
The high profile Ombudsman, Kate Carnell, who has authored a report released today into banking practices, has found lenders are not being fair when they enter into contracts with small and medium-sized businesses.
The big four banks enjoy a $19 billion advantage over their smaller rivals by still being able to self-calculate the riskiness of their home loans according to analysis from the Australian Prudential Regulation Authority.
Despite a new regulatory framework requiring the big banks to hold larger top tier capital buffers, their ability to internally assess their asset risks is still a huge advantage in terms of the amount of “expensive” capital locked up and their ability to access cheaper funding.
While the CBA, NAB, Westpac and ANZ are now required to base their regulatory capital on a blanket of at least 25 percent of mortgages being at risk, smaller lenders must base their risk weightings at 39 percent :: Read the full article »»»»
Posted: August 26th, 2015 | Author: Michael Courtenay | Filed under: Business and Economy | Tags: Analytics, Business News, CHINA, Correction, Crash, Global Share Markets, Market Watch, Socially Engineered | Comments Off on Anatomy of a Bloodbath, Will Augusts Stock Market Correction CRASH?
Many financial analysts have rushed to describe the current global stock market turmoil as a historic event, unprecedented, a bloodbath, however its evolution has so far been quite traditional. The correction, if that’s what this is, has been building since 2011/12 when many analysts began to question the numbers attached to Chinese growth, peaking earlier this year when markets reached new optimism, April marked historic highs for global indices. And while markets around the globe rally to retake losses, China remains the question on everyone’s lips.
Globally this current selloff started as a repricing of growth outlooks, in the main based on believable or unbelievable numbers out of China over the past 5 years, mounting evidence of economic weakness in the worlds second largest economy, coupled with persistent low growth in Europe and Japan, made it hard for markets to ignore the impact on earnings and profitability of what looked suspiciously like a global slowdown :: Read the full article »»»»
Posted: October 14th, 2013 | Author: Verity Penfold | Filed under: Australian Home Prices | Tags: Australian Home Prices, Australian Property Market, Business News, Home Loan, Mortgage, RBA, Real Estate News, Renovation Planning, Reserve Bank of Australia | Comments Off on Demand Slips for Aussie Home Loans as Buyers Exit the Market
Demand for new home loans by owner-occupiers has slipped backward for the first time this year, first home buyers are deserting the market, official figures show.
The Bureau of Statistics Housing Finance data shows that the number of new mortgages to owner occupiers dropped by 3.9 percent in August to 49,912, seasonally adjusted. The value of loans to property investors held steady.
In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes rose by 0.3 per cent and was 13.3 per cent higher than the same period in 2012.
This included a 0.2 per cent increase in the number of loans for the construction of a new dwelling during the three months to August, with lending in this segment up 3.6 per cent compared with the same period of 2012. The number of loans for the purchase of new homes was 0.6 per cent higher in the three months to August :: Read the full article »»»»
Posted: February 11th, 2013 | Author: Michael Courtenay | Filed under: Australian Home Prices, Real Estate News | Tags: Australian Property Market, Business News, Home Loan, Mortgage, RBA, Renovation Planning, Reserve Bank of Australia | 1 Comment »
Australia’s Reserve Bank – RBA – figures indicate that Australians are taking out home loans at the slowest annual pace ever recorded, suggesting that the property downturn may be far from over.
Figures from the RBA show total lending to the private sector grew 0.4 per cent in December, with the amount Australians borrowed rising by only 3.6 per cent in 2012. It’s not all doom – though mostly – the RBA data shows housing credit remains the most consistently robust category of borrowing, with a 4.5 per cent rise over the 12 months.
But, that annual housing credit growth rate is the slowest in RBA recorded history, admitedly the figures only go back to 1977.
Home lending growth of 0.3 per cent in December is also one of slowest monthly increases recorded :: Read the full article »»»»
Posted: May 19th, 2012 | Author: Michael Courtenay | Filed under: Business and Economy | Tags: Banks, Business News, Homeloan, Mortgage | Comments Off on Banks Rush to Service Offshore Property Investors
Despite the plight facing banks whose overexposure to property has forced them to write-down billions in losses, Australia’s four largest banks have increased their exposure to commercial property by $3.8 billion in the last six months, according to a report by The Australian Financial Review.
The sharp increase comes as the banks seek to meet growing interest in Australia’s property market from offshore investors at a time when several major global banks, including the Bank of Scotland International and Royal Bank of Scotland, have withdrawn billions from Australia’s property market.
“There has been a big uptick by offshore investors here and a lot of that is being funded by us and the large banks,” CBA head of property Peter Barnes said, according to the AFR. CBRE senior managing director for international investment properties Richard Butler said banks have rushed to capitalise on foreign interest :: Read the full article »»»»