Digital Finance Analytics (DFA) Blog
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APRA Chairman Wayne Byers spoke at the A50 Australian Economic Forum, Sydney. Significantly, he says the temporary measures taken to address too-free mortgage lending will morph into the more permanent focus on amongst other things, further strengthening of borrower serviceability assessments by lenders, strengthened capital requirements for mortgage lending imposed by us, and comprehensive credit … Continue reading “APRA on Bank Capital and Housing”
The RBA published the minutes of their last meeting, when the cash rate was held, once again. There is a little more colour in their comments, but nothing has substantially changed in that where the labour market, wage and inflation trends will set their policy direction in 2018. Once again, they mention the medium-term risks … Continue reading “RBA Warns On Household Risks”
Christopher Kent, RBA Assistant Governor (Financial Markets), spoke at the 30th Australasian Finance and Banking Conference on The Availability of Business Funding, a subject which was featured in the recent RBA Bulletin. While his speech covered the gamut of business finance, his comments on small business are important. He acknowledged the need for, and difficulty … Continue reading “Yes, Finance For Small Business IS a Problem”
Last Thursday, the House of Representatives Standing Committee on Economics released their third report on their Review of the Four Major Banks. They highlight issues relating to IO Mortgage Pricing, Tap and Go Debt Payments, Comprehensive Credit and AUSTRAC Thresholds. Looking back at the issues The Committee raised since inception in 2016, they have had … Continue reading “Third Report On Banks Recommends Focus on IO Loan Pricing”
From The Adviser. The chairman of the prudential regulator has called on the finance industry to “devote more effort to the collection of realistic living expense estimates from borrowers” and give “greater thought” to the appropriate use and construct of benchmarks. Speaking at the Australian Securitisation Forum 2017 on Tuesday (21 November), the chairman of … Continue reading “APRA calls for renewed focus on ‘realistic living expenses’”
Wayne Byers, APRA Chairman spoke at the Australian Securitisation Forum 2017. Household debt is high, and continues to rise. There are a three interesting observations within his speech about the risks in the mortgage system, despite their recent interventions. First, the trend in non-performing housing loans is upward, despite a relatively benign environment for lenders. … Continue reading “APRA On Housing – Risks Lurking Beneath”
From Australian Fintech. SocietyOne, Australia’s consumer marketplace lender, has set new records for lending with growth in 2017 already surpassing the level of volumes for the whole of 2016. Total lending since the company started operating five years ago has now topped $350 million as the current loan book also reached $200 million for the … Continue reading “SocietyOne sets new record with triple milestones in 2017”
From Mortgage Professional Australia. The MFAA and FBAA have harshly criticised a UBS report which claimed 1/3 of mortgage applications were not entirely accurate (which they term ‘liar loans’). The report, which also claimed broker channel loans were more likely to contain inaccurate information, was branded ‘reckless’ by the FBAA because it was “based on … Continue reading “Brokers and Banks Respond to ‘Liar’ Loan Claims from UBS”
Mark Degotardi, CEO, Customer Owned Banking Association (COBA) discussed banking competition in a statement to Productivity Commission Inquiry into the State of Competition in the Australian Financial System. They call out the implicit Government guarantee the major banks enjoy, the differential risk weights, and how the recent 10% investor loan growth speed limit adversely impacted … Continue reading “COBA statement to Productivity Commission Inquiry into Competition in the Financial System”
On 28th November, a press release was posted on the Hon Kelly O’Dwyer MP’s web site which outlined the Government response to the Small Amount Credit Contract Review which was completed in April 2016. Given the holiday break, and the fact this was not announced via the Treasury it may have got lost. I certainly … Continue reading “Proposed SACC Changes Were Broadly Accepted By Government In November 2016”