K62 Finance

Chalmers asks ACCC to probe deposit rates

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 12 & 15 : 11-Jan-23

Treasurer Jim Chalmers says consumers with savings accounts should consider switching banks to get a better deal, given that some banks still have low deposit interest rates despite eight increases in the cash rate during 2022. Chalmers contends that banks should treat their customers fairly with regard to savings accounts, and he has asked the Australian Competition & Consumer Commission to examine this issue in 2023. Analysis shows that smaller banks generally have much more competitive interest rates on deposit accounts than the nation’s four major banks.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

ACCC calls on banks in merger probe

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Original article by Joyce Moullakis
The Australian – Page: 13 & 16 : 4-Jan-23

The Australian Competition & Consumer Commission is currently assessing the ANZ Bank’s proposed deal to acquire Suncorp Group’s banking arm. Sources have indicated that the ACCC has requested information and data from the nation’s major and regional banks as part of the process, using its compulsory powers under the Competition and Consumer Act 2010. This information is said to include bank returns, net interest margins, funding costs and market share. The ACCC is seeking submissions on the ANZ deal by 18 January, and it aims to make a final decision on the transaction in June.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,SUNCORP BANK,SUNCORP GROUP LIMITED – ASX SUN,AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Banks demand buy now, pay later details for home loans

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 23-Dec-22

ING and Macquarie Bank have told mortgage brokers that they are now including buy now, pay later debts when assessing a person’s ability to repay a mortgage or other type of loan. ING has also advised brokers that outstanding Higher Education Contribution Scheme (HECS) or Higher Education Loan Program (HELP) debt amounts need to be included in the loan serviceability assessment, while it is to increase the minimum required deposit from five per cent to 10 per cent to line up with its align with its lenders’ mortgage insurer’s policy on "high-risk postcodes".

CORPORATES
ING AUSTRALIA HOLDINGS LIMITED, MACQUARIE BANK LIMITED – ASX MBL

Inflation tipped to rise to highest level in 32 years

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Original article by Emma Rapaport
The Australian Financial Review – Page: 29 : 29-Nov-22

The latest monthly inflation data will be released on Wednesday. Catherine Birch from the ANZ Bank expects the data to show that the headline inflation rate rose from 7.3 per cent in September to 7.8 per cent in October. Birch also forecasts that the Reserve Bank’s preferred measure of trimmed mean inflation will rise from 5.4 per cent to 5.9 per cent. The ANZ expects the quarterly headline inflation rate to peak at eight per cent in the final three months of 2022 and remain above the central bank’s target range of 2-3 per cent until the end of 2024. It also anticipates that the Reserve Bank will begin to ease monetary policy in November 2024.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

NZ Reserve Bank nails our RBA’s failure

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Original article by Terry McCrann
Herald Sun – Page: 49 : 24-Nov-22

Reserve Bank of Australia governor Philip Lowe has stated that wage outcomes must be consistent with the return of inflation to the central bank’s target range of 2-3 per cent. Increasing wages in line with the inflation rate would inevitably result in large-scale job losses and further boost inflation. Allowing inflation to remain well above the target range for too long would also heighten the risk of a wage-price spiral. The Reserve Bank of New Zealand recognises these risks; its cash rate was increased by 75 basis points on Wednesday, and it seriously considered a one per cent increase. In contrast, the RBA increased the cash rate by just 25 basis points in November, despite the inflation rate in both countries being nearly identical. NZ’s cash rate is now 4.25 per cent, but Australia’s cash rate will still be just 3.1 per cent if – as expected – the RBA announces a 25 basis point increase in December.

CORPORATES
RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND

Economists tip supersized Cup day rate rise

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Original article by Ronald Mizen
The Australian Financial Review – Page: 11 : 28-Oct-22

Westpac’s chief economist Bill Evans expects the Reserve Bank of Australia to increase the cash rate by 50 basis points in November, in response to the latest inflation data. Westpac now anticipates that official interest rates will peak at 3.85 per cent, a view shared by the Commonwealth Bank. National Australia Bank and ANZ in turn expect interest rates to peak at 3.6 per cent and 3.1 per cent respectively. Meanwhile, financial markets have priced in a 25 basis point increase in November.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

APRA warns on bank cyber risks

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 19 : 12-Oct-22

Australian Prudential Regulation Authority chairman Wayne Byres has told a parliamentary committee hearing that a cyber attack on one of the nation’s financial institutions is inevitable. Byres said the sector has invested significantly in protecting their systems from hackers, but it is only a matter of time before a hacker is successful. He added that it is equally important to invest in response capabilities so any breaches are detected quickly and action is taken to limit the damage. S&P Global Ratings recently warned that Australia’s regional banks in particular are vulnerable to data breaches.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, S&P GLOBAL RATINGS

Homeowners rush to refinance their loans

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Original article by Patrick Commins
The Australian – Page: 4 : 5-Oct-22

Data from the Australian Bureau of Statistics shows that a record $19bn worth of home loans were refinanced in August. This is five per cent higher than in July, and 10 per cent higher than a year ago. Owner-occupiers refinanced some $12.8bn worth of home loans, while property investors refinanced $6.1bn worth of loans. The figures also show that new mortgage loan commitments fell 3.4 per cent to $27.4bn in August; there has been a 15 per cent decline in housing loan commitments since the Reserve Bank started increasing the cash rate in May.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Crisis as bank branches closed

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Original article by Joyce Moullakis
The Australian – Page: 15 : 21-Sep-22

The Finance Sector Union has urged the federal government to hold an inquiry into the impact of bank branch closures on customers and communities. The FSU’s national secretary Julia Angrisano says the union has been particularly concerned about the closure of branches in regional areas. BankWest has advised that it will close 14 branches in NSW, Queensland, Victoria and South Australia, while 29 branches in regional areas in Western Australia will have reduced trading hours. Angrisano has accused BankWest’s parent the Commonwealth Bank of putting "profits before people".

CORPORATES
FINANCE SECTOR UNION, BANKWEST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

One in seven buy now, pay later customers had more than 20 loans last year, Choice survey shows

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Original article by Ben Butler
The Guardian Australia – Page: Online : 16-Sep-22

New data highlights the growing use of ‘buy now, pay later’ services in Australia and the need for greater regulation of the sector. Consumer group Choice has found that 14 per cent of consumers are using BNPL services to pay their energy bills, while one in six are using them to buy groceries. Patrick Veyret of Choice says it is shocking that Australians are being forced to use these services to pay for essentials. He notes that some people are taking out loans with up to 10 different BNPL providers. The sector will be subject to the same regulation as credit providers under reforms that have been flagged by the federal government.

CORPORATES
AUSTRALIAN CONSUMERS’ ASSOCIATION