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Report Into Australian Bank Practice Finds Lenders Unfair

Posted: February 3rd, 2017 | Author: | Filed under: Business News, Indeep Media | Tags: , , , , | Comments Off on Report Into Australian Bank Practice Finds Lenders Unfair

Report Into Australian Bank Practice Finds Lenders UnfairI’ve banked with a small bank – Bendigo Bank – since my return to Melbourne 8 years ago. Australia’s big banks have plenty of critics, and now they can add the Small Business Ombudsman to that fast growing list.

The high profile Ombudsman, Kate Carnell, who has authored a report released today into banking practices, has found lenders are not being fair when they enter into contracts with small and medium-sized businesses.

The big four banks enjoy a $19 billion advantage over their smaller rivals by still being able to self-calculate the riskiness of their home loans according to analysis from the Australian Prudential Regulation Authority.

Despite a new regulatory framework requiring the big banks to hold larger top tier capital buffers, their ability to internally assess their asset risks is still a huge advantage in terms of the amount of “expensive” capital locked up and their ability to access cheaper funding.

While the CBA, NAB, Westpac and ANZ are now required to base their regulatory capital on a blanket of at least 25 percent of mortgages being at risk, smaller lenders must base their risk weightings at 39 percent :: Read the full article »»»»


Australia to Sign-up For China-based Asian Infrastructure Investment Bank

Posted: March 28th, 2015 | Author: | Filed under: Business News | Tags: , , , , , , | Comments Off on Australia to Sign-up For China-based Asian Infrastructure Investment Bank

Australia to Sign-up For China-based Asian Infrastructure Investment BankThe Australian Federal Government will sign a memorandum of understanding that will allow Australia to participate in negotiations to set up the $100 billion China-led Asian Infrastructure Investment Bank – AIIB.

The Beijing-based bank was launched late last year and is designed to help finance development projects like road, rail and power infrastructure in the rapidly growing Asian region.

More than 20 countries have signed on as founding members.

In the past month, major Western powers including Britain, France, Germany and Italy have also announced their intention to join.

Australia had resisted joining, but a joint statement from Prime Minister Tony Abbott, Foreign Affairs Minister Julie Bishop and Treasurer Joe Hockey said the Government would sign the MOU that would allow Australia to participate as a prospective founding member :: Read the full article »»»»


Reserve Bank Governor Says Australians Too Pessimistic

Posted: June 10th, 2012 | Author: | Filed under: Business News | Tags: , , , , , , | Comments Off on Reserve Bank Governor Says Australians Too Pessimistic

Reserve Bank Governor Glenn Stevens Says Australians Too PessimisticAustralia’s Reserve Bank chief, Glenn Stevens says Australians are too pessimistic on the state of the country’s economy, Stevens reckons that we should be much more optimistic over the nations prospects.

Speaking at the American Chamber of Commerce in Australia luncheon in South Australia, Stevens described the nations better than expected growth figures as “quite respectable”. The reserve bank chief said that changes in the world economy present challenges that can easily be overcome.

Stevens said Australia is in a good position to tackle possible world recession sparked by the debt woes facing Europe. He said that economic indicators show that Australia has handled the global financial crisis of 2008 well :: Read the full article »»»»


European Study Pours Cold Water on Australian Banks Cost Claims

Posted: February 21st, 2012 | Author: | Filed under: Business News | Tags: , , , , , , , , , | Comments Off on European Study Pours Cold Water on Australian Banks Cost Claims

European Study Pours Cold Water on Australian Banks Cost ClaimsElysse Morgan from ABC reports that new research by one of Europe’s biggest banks suggests that Australian banks are hiking interest rates to protect profit margins, not to cover higher funding costs as they have insisted. But the Australian Bankers’ Association has dismissed the study and says lenders may have to raise their rates again.

The study by Societe Generale shows nearly all funding costs for Australian lenders have fallen in the last six months. Societe Generale’s head of strategy in Asia, Christian Carrillo, says the banks’ claims about rising costs are dubious.

“Research suggests that effectively pretty much every source of funding that they use in terms of domestic deposits, short-term funding onshore, long-term funding onshore, has actually gone down,” Mr Carrillo said. ”There has been some widening in spreads between offshore funding rates and the rates that they use to hedge against, but if you take into account the overall rate they pay to fund overseas, even that has actually come down slightly.” Read the full article »»»»


SAAB Files For Bankruptcy

Posted: December 19th, 2011 | Author: | Filed under: Business News | Tags: , , , , , | Comments Off on SAAB Files For Bankruptcy

SAAB Files For BankruptcyThe stalwart Swedish car maker Saab has filed for bankruptcy, bringing to an end two years of struggle to rescue the iconic brand.

Final desperate efforts to organise help from China were obstructed by General Motors over licences.

A statement on the court’s website said three Saab companies had filed for bankruptcy: SAAB Automobile Aktiebolag, Saab Automobile Tools AB and Saab Automobile Powertrain. Saab’s charismatic chief executive Victor Muller had been due to appear before the court on Monday as judges had been scheduled to decide whether to lift or prolong the three-month bankruptcy protection Saab had been placed under while it was attempting to negotiate a deal to rescue the company.

The car maker was forced to halt production in April as suppliers stopped deliveries over mountains of unpaid bills. Saab’s some 3,700 employees, whose salaries have been delayed for five months running, have yet to receive their November pay cheques :: Read the full article »»»»