Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Today, in a speech by Chris Aylmer, Head of Domestic Markets Department, RBA, we got an interesting summary of recent developments in the market. This is important, because as at June, the Bank held about $25 billion of these assets under repo as part of their liquidity management operations. In addition, at the same forum, … Continue reading “Australian Securitisation Under The Microscope”
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”
Nab released full year results to September 2014 today. From the ASX announcement we see: Cash earnings declined to $5.18 billion, which is 9.8% below the September 2013 full year due to earnings adjustments announced on 9 October 2014 relating to UK conduct provisions, capitalised software impairment, deferred tax asset provisions and R&D tax policy … Continue reading “Nab’s Long Winding Road Home”
Channel 9’s ACA aired an 8 minute piece on foreign buyers in the property market, with a specific focus on potential Chinese buyers, including a section showing a bi-lingual auction. http://www.youtube.com/watch?feature=player_embedded&v=DJh1tUsYhNg
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!”
In the current discussions about macroprudential, stimulated by the RBA comments last week and likely to be stoked further as the RBA appears before the Senate Banking Committee on Thursday, many are claiming that household balance sheets and incomes are supporting the growth in house prices, and so no intervention is needed. The chair of … Continue reading “Household Incomes And Property Segmentation”
The RBA published the notes from their last meeting today. The theme was similar to previous ones, “Members considered that the most prudent course was likely to be a period of stability in interest rates,” but in the variations, there was a sub-text relating to property prices. I have extracted just those paragraphs: Members noted … Continue reading “RBA And Property Speculation”
The ABS released their data for the managed funds industry to June 2014 today. At 30 June 2014, the managed funds industry had $2,405.3b funds under management, an increase of $46.1b (2%) on the March quarter 2014 figure of $2,359.2b. The main valuation effects that occurred during the June quarter 2014 were as follows: the … Continue reading “Managed Funds Industry Now At A Record $2.4 Trillion”
We know that first time buyers are sitting on the sidelines, as shown in our recent surveys. The biggest barrier is price. Many are desperate to enter the market and would jump at any additional incentive. No surprise then to see proposals popping up from time to time to try and assist first time buyers. … Continue reading “Why Enticing First Time Buyers With Super Is A Bad Idea”
The draft report was released today. In a layered document, it sets out a series of 28 observations, and possible options for ongoing consideration. The main observations are set out below: • The banking sector is competitive, albeit concentrated. The application of capital requirements is not competitively neutral. Banks that use internal ratings-based (IRB) risk … Continue reading “Financial System Inquiry – Interim Report”