Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
We have updated our bank fee analysis, to take account of the 2013 data from the RBA. They collect fees data from 17 banks operating in Australia, covering over 90 per cent of total banking sector assets. Each bank provides data on income received over the financial year that is used as the basis for … Continue reading “Banking Fees Cost $11.6 bn”
APRA has released Wayne Byre’s speech at the ABF Randstad Leaders Lecture Series on Seeking strength in adversity: Lesson’s from APRA’s 2014 stress test on Australia’s largest banks. He outlines the results of recent bank stress testing, with a focus on the exposure to mortgage lending. Essentially, the tests indicate that whilst capital buffers appear … Continue reading “APRA’s Stress Testing And Bank Optimism”
ASIC has updated its guidance for credit licensees on their responsible lending obligations. Credit licensees cannot rely solely on benchmark living expense figures rather than taking separate steps to inquire into borrowers’ actual living expenses. The updated guidance reflects: a recent Federal Court decision that is relevant to all credit licensees regarding their responsible lending … Continue reading “ASIC Updates Responsible Lending Guidance”
Following its earlier draft, APRA today released a final prudential practice guide for authorised deposit-taking institutions (ADIs) on sound risk management practices for residential mortgage lending. Prudential Practice Guide APG 223 Residential mortgage lending (APG 223) provides guidance to ADIs on addressing housing credit risk within their risk management framework, applying sound loan origination criteria … Continue reading “APRA Releases Final Mortgage Lending Guidance”
In a contrast to Nab yesterday, ANZ’s full year results today are striking. In the year to September 30, ANZ delivered a cash profit of $7.12 billion which is a 10 per cent increase on last year’s result. This is in line with forecasts. Full-year net profit increased 15 per cent to $7.27bn, while operating … Continue reading “ANZ Lifts Profit 10%”
There is no doubt that negative gearing is a hot issue. As the ASIC Money Smart web site says: Negative gearing is when your income from an investment is less than your expenses. In the case of property this means the rental income you receive is less than the interest and other expenses you pay. … Continue reading “A Perspective On Negative Gearing”
The Australian Prudential Regulation Authority (APRA) has published the opening statement given to the Senate Standing Committee on Economics by Wayne Byres today. He appears to deflect focus from macro prudential intervention. Recent comments in the Reserve Bank’s Financial Stability Review about emerging imbalances within the housing market, and the need to reinforce sound lending … Continue reading “APRA Hoses Down Macroprudential”
As part of the DFA household surveys, we segment the housing market, to identify those who want to buy and first time buyers, as well as those down trading, the affluent, suburban and seniors. We described the full segmentation recently. Today we look at those who are trying to buy. This group has been under … Continue reading “The Rise And Rise Of The Bank Of Mum and Dad”
In the paper released by the Central Bank of Ireland, it is clear they have gone macroprudential! According to the Irish Times new rules will be applied to mortgage lenders in Ireland from 1 January 2015. A 2 month consultation period now starts, so they may get tweaked before implementation. The UK had announced parallel … Continue reading “Ireland Joins The Macroprudential Bandwagon”
In the just release IMF World Economic Outlook, as well as revising down growth estimates, they discuss macroprudential, highly relevant in the light of RBA comments. The main observations are: there is evidence that macroprudential can assist in manage house price growth, and credit growth. Different settings should be applied to different types of purchases, … Continue reading “IMF On Macroprudential – It Works!”