Digital Finance Analytics (DFA) Blog
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Another massive week of finance and property news, much of it centred on households and their finances, as the regulators home in on the risks in the mortgage market. But is it too little too late? Welcome to the Property Imperative weekly to the 14th October 2017. Watch the video, or read the transcript. We … Continue reading “Too Little Too Late? – The Property Imperative Weekly 14th October 2017”
The latest 62 page edition of the RBA Financial Stability Review has been released, and it continues their line “of some risks, but no worries”. International economic conditions, and business confidence are, they say, on the improve while Australian household balance sheets and the housing market remain a core area of interest. The potential impact … Continue reading “RBA Financial Stability – Move Along, Nothing To See Here….”
Australia’s most recognised regional banks have called on a major competition inquiry to level the playing field and put consumers and the economy first. In a joint submission lodged with the Productivity Commission, AMP Bank, Bank of Queensland, Bendigo and Adelaide Bank, ME Bank and Suncorp highlighted five key areas that require policy reform to … Continue reading “Regional banks call for level playing field”
The latest Bank of England KnowledgeBank discusses the impact of regulation since 2007. They discuss, capital, shadow banking and banker remuneration. The financial crisis that struck in 2007 was among the worst on record. And it was global in nature. Financial markets seized up, world trade plummeted and the global economy went into recession. The … Continue reading “Is the global financial system any safer than before?”
The latest RBA minutes really does not add much to our understanding, other than the bank continues to watch developments in the property market, they are holding to their forecasts on growth, and the signals across the economy are mixed. Perhaps they were muted because of the reaction to the 2% rate lift to neutral … Continue reading “RBA Minutes For August Says Little (In Many Words)”
From Mortgage Professional Australia. There are two ways to bury bad news, and brokers have now experienced both. Method one is to run that news on a Friday when everyone’s mind is on the weekend, as APRA did when announcing curbs on interest-only lending on the final day of March. The 2017 Federal Budget took … Continue reading “Why regulators have finally noticed the non-banks”
An interesting working paper from the IMF “Financial Stability Analysis: What are the Data Needs?” looks in detail at the information which is required to enable regulators to understand the dynamics and early warning signs of risks to financial stability. They argue we need to get granular, and think more about “micro-prudential”. Macro-prudential is not … Continue reading “The Need For Granularity”
Interesting speech from Prof Claudia Buch Vice-President of the Deutsche Bundesbank on “Data needs and statistics compilation for macroprudential analysis.” Availability of data on real estate markets does not match the importance of these markets for financial stability. The lack of data is profound. Surveillance of risks to financial stability requires good data and information. … Continue reading “G20 Data Gaps Initiative – Real Estate Data Hole”
From our friends at MacroBusiness, quoting Nathan Lynch, Asia-Pacific bureau chief, financial crime and risk, Thomson Reuters. The video is essential viewing! It was only the devoted, the desperate or the sleep deprived who remained in the chamber last night in Canberra when Wayne Byres, APRA chairman, buckled under a sustained line of questioning. For … Continue reading “APRA Wriggles In Senate Probe On Housing Risk”
The St. Louis Fed On The Economy Blog had an interesting article today, looking at why the GFC happened, and how the Dodd-Frank Act has addressed the issues in the US (yes, the one which may be repealed if Trump gets his way). But, look at the issues in the Australian context and score for … Continue reading “Why Didn’t Bank Regulators Prevent the Financial Crisis?”