RBA rate cut will hurt bank profits

The problem for banks, following last week’s cash rate cut, is that they can’t cut the rates on all their deposits, in line with the cuts to mortgage rates. Their margins are being squeezed. In its commentary on the impact…

Big bank results: revenue, margins, dividends under pressure

Revenue trends among the big banks reporting their half-year results over the coming week will be weak, according to one analyst’s preview of the results. And NAB will cut its dividend. Macquarie Securities expects all three of the banks –…

Open banking ready for lift off

The Government introduced its consumer data right bill last week, which marks the beginning of the development of open banking in the Australian market. The new right, set out in Treasury Laws Amendment (Consumer Data Right) Bill 2019, is designed…

The New Criterion

Royal Commissioner Kenneth Madison Hayne’s final report on bank atrocities was never going to make pretty reading after the tome landed on the desk of salivating reporters. Having said that, the entrails weren’t quite as gory as expected and the…

Q&A 5 November 2018

Q: I’ve seen some references to big banks changing the way they report on how we manage our credit. I am a customer of one of the big banks. How is this going to affect me? A: Under the old…

New banking code a win for customers

Banks will abolish some fees, make it easier for customers to switch banks and be more proactive in dealing with customer in financial difficulty, under the terms of a new Banking Code of Practice. The Australian Banking Association announced last…

Kavanagh

One of the big issues economists and financial market participants have debated this year is whether regulatory pressure on banks to tighten their lending standards is leading to a “credit crunch”, which may have serious consequences for bank earnings and…

Lower growth outlook for banks

Half-year results reported by ANZ and National Australia Bank last week show that the big banks are struggling to achieve revenue growth in their key Australian retail and banking divisions. Commentaries provided with the results indicate that this situation will…