K62 Finance

Millions of people being left behind as big banks close branches, say experts

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Original article by Matthew Elmas
The New Daily – Page: Online : 16-Feb-24

Researchers from RMIT and Swinburne University have warned that many Australians are being left with limited or no access to banking services as the sector shifts to digital banking. The nation’s major banks have closed hundreds of branches in recent years, but Julian Thomas from RMIT says a significant proportion of Australians either lack reliable access to the internet or cannot afford the cost. The banking industry has claimed that nine out of 10 Australians now use online banking; however, the researchers’ analysis of digital inclusion index data shows that only 74 per cent of people aged 75+ and 87 per cent of public housing tenants do so. They also note that many people in regional and rural areas lack reliable internet access.

CORPORATES
RMIT UNIVERSITY, SWINBURNE UNIVERSITY OF TECHNOLOGY

RBA rate cuts a double-edged sword for first-home buyers

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Original article by Matt Bell
The Australian – Page: 19 : 6-Feb-24

The Reserve Bank of Australia is widely tipped to leave the cash rate unchanged at 4.35 per cent on Tuesday. Sally Tindall of RateCity says the key focus will be on whether the central bank removes its tightening bias. Meanwhile, money markets now expect the RBA to reduce the cash rate by 25 per cent in both August and November. Ray White’s chief economist Nerida Conisbee notes that interest rate cuts will increase the borrowing power of first home buyers, but can also be expected to further boost house prices.

CORPORATES
RESERVE BANK OF AUSTRALIA, RATECITY PTY LTD, RAY WHITE GROUP

Mortgage stress increased in December following RBA’s November rate rise but still below mid-year highs

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Original article by Roy Morgan
Market Research Update – Page: Online : 31-Jan-24

New research from Roy Morgan shows that 1,527,000 mortgage holders (30.3%) were ‘At Risk’ of ‘mortgage stress’ in the three months to December 2023. This period included an interest rate increase on Melbourne Cup Day, with the RBA raising interest rates to 4.35%. The figure for December represented the highest level of mortgage stress for three months as the impact of the interest rate increase flowed through, but still below the record highs above 1.56 million mortgage holders ‘At Risk’ in both August and September 2023. This is only the fourth time the index has shown over 1.5 million mortgage holders to be considered ‘At Risk’. The number of Australians ‘At Risk’ of mortgage stress has increased by 720,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 964,000 (19.8% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.2%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

Investors caution markets still too bullish on rates

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Original article by Cecile Lefort
The Australian Financial Review – Page: 21 : 24-Jan-24

Financial markets have scaled back their expectations of interest rate cuts from the Reserve Bank of Australia in 2024; the RBA is now expected to reduce the cash rate by 37 basis points over the year, compared with expectations of a 55 basis point cut earlier in January. Tim Van Klaveren of UBS expects two rate cuts in 2024, while Matt Wacher from Morningstar anticipates three rate cuts in response to an economy that he expects to slow quickly. Meanwhile, financial markets have now fully priced in a US interest rate cut in June.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

Economists warn of unintended fallout from RBA overhaul

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Original article by Cecile Lefort
The Australian Financial Review – Page: 21 : 17-Jan-24

Economists polled by The Australian Financial Review have expressed some reservations with regard to how the Reserve Bank will communicate monetary policy decisions under its new structure. The RBA’s mew Monetary Policy Board will be responsible for setting interest rates; it will publish details of how the board voted on rate decisions, but not the voting records of each board member. Economists contend amongst other things that not diclosing these votes could potentially give rise to speculation of dissension amongst board members when this does not exist.

CORPORATES
RESERVE BANK OF AUSTRALIA

Mortgage stress continued to ease in November despite the RBA raising interest rates on Melbourne Cup Day

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Jan-24

New research from Roy Morgan shows that 1,490,000 mortgage holders (29.9%) were ‘At Risk’ of ‘mortgage stress’ in the three months to November 2023. This period included only one interest rate increase on Melbourne Cup Day, with the RBA raising interest rates to 4.35%. The figure for November represented a second straight monthly decrease as mortgage stress continued to ease due to a combination of factors – including increased household incomes, increased employment and reduced amounts borrowed and outstanding. This is the first time since January 2022 (before the RBA began raising interest rates) that mortgage stress has decreased for two straight months. However, despite the easing in mortgage stress this was only the sixth time in the history of the index that over 1.45 million mortgage holders were considered ‘At Risk’. The number of Australians ‘At Risk’ of mortgage stress has increased by 683,000 since May 2022 when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 934,000 (19.3% of mortgage holders) which is significantly above the long-term average over the last 10 years of 14.2%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED

Bullock: banks should bear more of cost of moving cash

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Original article by James Eyers
The Australian Financial Review – Page: 4 : 13-Dec-23

Australia’s major banks will hold an emergency meeting on Wednesday to discuss the future of cash distribution, amid warnings from cash transport firm Armaguard that the growing shift to digital payments may threaten the company’s viability. Reserve Bank of Australia governor Michele Bullock says there are merits to exploring a co-operative model for cash distribution, which would require authorisation from the Australian Competition & Consumer Commission. Bullock added that the central bank places a high priority on the community continuing to have reasonable access to cash withdrawal and deposit services.

CORPORATES
RESERVE BANK OF AUSTRALIA, ARMAGUARD

ANZ-Suncorp deal no threat

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Original article by Glen Norris
The Australian – Page: 15 : 5-Dec-23

The ANZ Bank’s appeal against the blocking of its deal to buy Suncorp Bank continued before the Australian Competition Tribunal on Tuesday. Cameron Moore SC, who is representing Suncorp Group, contended that the $4.9bn deal would not undermine competition in the banking sector, as Suncorp Bank is a relatively small player that had until recently been losing market share in its home state of Queensland. He also argued that a merger between Suncorp Bank and Bendigo Bank would not make financial sense for shareholders of either company.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP GROUP LIMITED – ASX SUN, SUNCORP BANK, AUSTRALIA. COMPETITION TRIBUNAL, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN

Westpac suffers online banking outage with customers shut out of accounts

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Original article by Martin Farrer
The Guardian Australia – Page: Online : 5-Dec-23

Westpac advised late on Monday evening that it was working to restore its mobile and online banking services following an outage that left customers unable to access their accounts. Westpac has attributed the outage which began at around 8pm to a ‘routine technology update’. Many people were unable to make payments via credit cards or mobile phone due to the outage, while others reported that they could log into Westpac’s platform but their accounts were missing. Some customers criticised Westpac for advising of the outage via social media rather than its website. Westpac had fully restored all affected services by 5.15am on Tuesday.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC

Mortgage stress eased in October before the RBA raised interest rates on Melbourne Cup Day

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Nov-23

New research from Roy Morgan shows that 1,514,000 mortgage holders (30.1%) were ‘At Risk’ of ‘mortgage stress’ in the three months to October 2023. This period included three RBA meetings at which interest rates were left unchanged and was before the increase on Melbourne Cup Day. The figure for October represented a slight decrease on a month earlier as mortgage stress eased due to a combination of factors, such as increased household incomes, increased employment and reduced amounts borrowed and outstanding. Despite the slight easing in mortgage stress, this was only the third time in the history of the index that over 1.5 million mortgage holders were considered ‘At Risk’. The number of Australians ‘At Risk’ of mortgage stress has increased by 707,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ of mortgage stress is now numbered at 967,000 (19.7%), which is significantly above the long-term average over the last 10 years of 14.1%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED