K62 Finance

Report pans banks’ reform resistance

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Original article by Richard Gluyas
The Australian – Page: 21 : 26-Apr-17

The ANZ Bank is the only major Australian bank to have supported the key recommendations of the House of Representatives economics committee’s first report on increasing competition and governance in the industry. The recommendations included measures to make bank executives more accountable for the misconduct of employees. The Australian Labor Party still maintains the need for a royal commission into the banking sector.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, LIBERAL PARTY OF AUSTRALIA

Banks may have to sell rivals’ products

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Original article by James Eyers
The Australian Financial Review – Page: 3 : 24-Apr-17

Australian Securities & Investments Commission chairman Greg Medcraft says the regulator may use soon-to-be acquired powers to restrict the scope of banks to cross-sell products. He was speaking at a financial technology forum in London. He said it is also possible that banks could be compelled to sell products offered by rivals under its "product intervention" powers.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INTERNATIONAL MONETARY FUND, AUSTRALIAN BRITISH CHAMBER OF COMMERCE

Brokers slam ‘radical’ home loan reforms

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Original article by Duncan Hughes, James Frost
The Australian Financial Review – Page: 15 & 19 : 20-Apr-17

The recommendations of a review of remuneration in Australia’s retail banking industry have been criticised by mortgage brokers. The recommendations include banning volume-based incentives and so-called soft dollar payments. Mortgage Choice and Australian Finance Group are among the mortgage broking firms that have questioned the recommendations of the review, which was undertaken by Stephen Sedgwick on behalf of the Australian Bankers’ Association.

CORPORATES
MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, MONEYQUEST, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PUBLIC SERVICE COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Jobs to go at NAB as banks face cost squeeze

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Original article by Richard Gluyas
The Australian – Page: 19 : 20-Apr-17

Australian banks are continuing to downsize their workforces amid rising costs, falling net interest margins and new capital requirements. The ANZ Bank has advised that it shed 35 IT jobs in early 2017, while National Australia Bank recently told staff that it intends to cut about 500 jobs. However, NAB will create 400 new jobs, with some displaced staff likely to be redeployed. There was a 2.4 per cent reduction in full-time staff in Australia’s banking industry in 2015-16.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks take advantage and profit from ‘general advice’

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 19-Apr-17

Financial Planning Association CEO Dante De Gori has expressed concern about the use of the term "general advice" in Australia’s financial services industry. He argues that many consumers are confused about what constitutes financial advice. The FPA advocates changing the phrase "general advice" to "general information", to ensure that consumers understand that they are being sold a financial product rather than receiving financial advice.

CORPORATES
FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, WESTPAC SECURITIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

Westpac’s Maxsted talks down need for capital

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Original article by Michael Bennet
The Australian – Page: 17 & 20 : 11-Apr-17

Westpac chairman Lindsay Maxsted is confident that recent measures aimed at curbing investor-only home loans will be sufficient and additional intervention by the Australian Prudential Regulation Authority will not be necessary. Maxsted also believes that the nation’s banks will not need to undertake further equity raisings in order to comply with new capital requirements. He adds that Westpac has prudent lending practices and will not approve loan applications for customers who may be at risk of default.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP

Stars align as Aussie battler skates to fair value

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Original article by David Rogers
The Australian – Page: 31 : 17-Feb-17

The Australian dollar peaked at $US0.7732 in local trading on 16 February 2017, in response to upbeat jobs data. National Australia Bank deems $US0.777 to be "fair value" for the currency at present, and NAB’s Ray Attrill says factors such as the rise in the iron ore price have contributed to the increase in its fair value in recent weeks. The currency has also benefited from growing expectations that the Reserve Bank will not significantly reduce the cash rate during 2017.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Mixed views on dollar’s chance of hitting US80c

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Original article by David Rogers
The Australian – Page: 28 : 15-Feb-17

The Australian dollar rallied on 14 February 2017, benefiting from factors such as an upbeat business survey and a strong rise in the Chinese producer price index. The currency has reached a two-year high on a trade-weighted index basis, while it is within sight of the 2016 high of $US0.7835. However, the spot price of iron ore may not be sustainable at the current elevated level, while the gap between official interest rates in Australia and the US is likely to narrow as the Federal Reserve gears up to tighten monetary policy.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JP MORGAN AUSTRALIA LIMITED

Apple Pay to take bite at big three banks

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 30 : 10-Feb-17

Macquarie Bank and ING Direct customers will have access to the Apple Pay service by the end of February 2017, but the ANZ Bank is the only "big four" bank that currently offers it. The head of Apple Pay, Jennifer Bailey, warns that the Commonwealth Bank, Westpac and National Australia Bank risk losing customers unless they embrace the global payments system. ANZ Bank has indicated that about 26 per cent of its customers use Apple Pay, while Bailey notes that Australians are now the biggest users of the service.

CORPORATES
APPLE PAY, APPLE INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE BANK LIMITED – ASX MBL, ING DIRECT, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Analysts suspect $65bn lift by big four banks has run its course

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Original article by Daniel Palmer
The Australian – Page: 21 : 13-Jan-17

Australia’s four major banks have enjoyed double-digit rises in their share prices since Donald Trump won the US presidential election. Their combined market capitalisation has risen by $A65bn in the last two months, prompting analysts to question whether the rally will continue. Jarrod Martin of Credit Suisse notes that shares in the "big four" are now close to fair value, although the firm is upbeat about the outlook for the banks. It anticipates earnings growth of four per cent and has upgraded its share price targets.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SHAW AND PARTNERS LIMITED, BELL POTTER SECURITIES LIMITED