Digital Finance Analytics (DFA) Blog
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Bendigo and Adelaide Bank and an Alliance of Australian credit unions today co-launched a new banking model that secures the independence and identities of the participating credit unions. The Alliance model was developed by Bendigo and four credit unions – AWA, BDCU, Circle and Service One. Under the Alliance model: The loans and deposits of … Continue reading “Bendigo, Credit Unions Launch New Banking Alliance”
The RBA, in today’s monetary statement discusses the relationship between loan growth and house prices. They conclude that factors including fear of unemployment, low supply, high loan to income ratios and stamp duty are all contributing factors, as well as price hikes themselves. Indicators of conditions in the established housing market, such as housing prices, … Continue reading “Why Mortgage Loans Are Growing Slower Than House Prices”
Just released. Sufficient signs of recovery mean the FED will end QE this month. Interest rates will remain low for now. One of the biggest economic experiments in history moves to a new phase. Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. … Continue reading “FED Ends Bond By-Back Programme”
In the recent DFA SME survey we highlighted the pressure many SME’s are under with regards to funding working capital. We also highlighted that in Australia, SME’s have few places to go to get financial assistance, hence the fact that the big banks have lifted their lending criteria and interest rates into the captive market. … Continue reading “SME Working Capital Courtesy Of PayPal”
We have been looking in detail at recent trends in housing refinance, by using a combination of the recently released ABS data and results from the DFA surveys. There is an interesting story to tell here. So today we explore the refinancing landscape. First the ABS data shows us that refinancing value has been increasing … Continue reading “Refinancing; An Important Driver Of Housing Finance”
The Bank of England (BoE) recently published their Q3 Credit Conditions Survey. This is the first edition since the recent Mortgage Market reforms were introduced, and the macroprudential controls were tabled. Looking specifically at secured lending to households they report that demand for credit has eased, and the proportion of higher loan to value loans … Continue reading “Macroprudential Bites in the UK – Bank of England”
Last night Ross Greenwood ran a piece on Mortgage Stress, using the DFA Mortgage Stress Data, which we had recently updated to take account of the latest economic data and surveys. You can watch a video of the report, courtesy of NineMSN. I covered the results of the updated modelling recently, and you can view … Continue reading “Mortgage Stress Coverage on Nine”
The RBA just released their Financial Stability Review for September 2014. They made a number of comments on Housing Lending, which I have collated in a more digestible form here. INVESTMENT LENDING Household credit growth has picked up, almost entirely driven by investor housing credit, which is growing at its fastest pace since late 2007. … Continue reading “RBA On Housing Lending in Financial Stability Review”
We have just received the latest findings from our Small and Medium Business surveys, which shows that many are still running hard to stand still and are unwilling or unable to borrow more. The sector is an important bell-weather for the broader economy, because nearly half of all Australian households are reliant in part or … Continue reading “SME’s Business Grinds On”
The ABS today released their home lending data to July 2014, which held a number of surprises. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.6%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.7%. In trend terms, the … Continue reading “Investment Lending Blows Its Stack”