Digital Finance Analytics (DFA) Blog
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In a clear stance on Labor’s trail position, Chris Bowen MP has said that the government’s response to the banking royal commission has “got it wrong”, particularly in regard to its “backflip” on removing trail from next year; via The Adviser. Speaking at the AFR Banking & Wealth Summit on 26 March, Chris Bowen, shadow … Continue reading “Shadow treasurer says government has ‘got it wrong’ on trail”
Recent events have the potential to create a revolution in Australian Finance. We explore the 72 hours that changed banking forever. Welcome to the Property Imperative Weekly to 10th February 2018.Watch the video or read the transcript. In our latest weekly digest, we start with the batch of new reports, all initiated by the current … Continue reading “72 Hours That Changed Banking – The Property Imperative Weekly 10 Feb 2018”
From Reuters. Blackstone Group has snapped up an 80-percent stake in property financing company La Trobe Financial for an undisclosed amount, in a move that will help the New York-based investment giant expand in Australia’s lucrative mortgage-lending market. This deal comes as Australia’s push to control a bubble in its red-hot housing market, by reining … Continue reading “Blackstone taps Australia’s shadow-lending market with La Trobe stake”
In the recent results round, the need to raise more capital in response to regulatory change was used as one of the pretexts for the need to lift mortgage rates. Given we, on an international comparison basis, still have more ground to make up to reach “unquestionably strong” we can expect this to continue, and … Continue reading “Why More Capital Won’t Fix Banking”
From The Conversation. The move for an inquiry into how banks treat small business customers should not overshadow the ongoing call for a broader royal commission on banks. Several financial inquries (outlined below) have failed to tackle the growing concentration in the Australian finance sector, or the need to separate general banking from investment banking … Continue reading “A history of failed reform: why Australia needs a banking royal commission”
From The Conversation. The Australian banking industry is a classic economic ‘oligopoly’ with the so-called ‘Four Pillars’ or ‘Big Four’ (National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), ANZ and Westpac) dominating not only the banking sector but the whole financial sector and arguably the economy. The big four banks account for over 25% … Continue reading “Banking outlook: threats from technology, burst of housing bubble, end of mining boom”
Andrew Bailey, Deputy Governor, Prudential Regulation and Chief Executive Officer, Prudential Regulation Authority gave a speech at Cambridge University – Financial Markets: identifying risks and appropriate responses – which discusses important concepts in relation to the effective supervision of Financial Markets, in the context of expanding bond markets and automated electronic trading. There is good … Continue reading “Risks In Financial Markets And Shadow Banks”
Like Australia, New Zealand is consulting on the capital requirements for its top banks, to mitigate their risk of failure. The Reserve Bank of New Zealand (RBNZ) received 160 industry submissions in the last round of consultation, including contributions from Australia’s major banks with Westpac voicing “significant concerns” around the advantages that could be handed … Continue reading “Westpac warns on rise of non-banks in NZ”
RBA Governor Lowe set out his views in Brisbane. What hope the budget surplus then? I would like to begin by providing an update on recent developments in the global and Australian economies. I will then discuss how our thinking on the appropriate stance of monetary policy has evolved over recent times. The Global Picture … Continue reading “RBA All But Confirms Cash Rate Cut Ahead”
According to Moody’s on 26 December, China’s State Council’s Financial Stability and Development Committee announced in a statement on the People’s Bank of China website that it was researching multiple ways to help commercial banks replenish capital and push for the issuance of perpetual bonds. The statement extends the thinking laid out by the regulator … Continue reading “China will allow banks to issue perpetual debt”