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Financial systems in Australia and internationally are resilient but face substantial risks

 

Australian businesses and households are generally in a strong financial position but some will struggle in the near term

 

The Australian financial system has the strength to withstand the economic downturn and support the economic recovery

While the Australian financial system is in a strong position, risks are elevated. These risks to the financial system would be exacerbated by a weaker-than-expected economic recovery, for example, stemming from further setbacks on the health front or international political tensions.

 

However, stress tests of the Australian banking system indicate under a baseline scenario based on the economic forecasts in the Bank's August 2020 Statement on Monetary Policy (SMP) banks will remain very well capitalised, not even entering their capital conservation buffers. Even if the economic contraction is substantially more severe under a downside scenario, banks would remain above their minimum capital requirements.

 

Given their strong balance sheets, banks will be well placed to continue lending, supporting the economic recovery and so in turn the Australian financial system.

https://www.rba.gov.au/publications/fsr/202...t/overview.html
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The Australian financial system has the strength to withstand the economic downturn and support the economic recovery

 

I love this talk of recovery.... In case you missed it, USA, UK and EU all going back into lock downs: Sars-CoV2 can only be beaten by removing the host from the virus ie. stop the spread. Given there was never a successful vaccine for Sars-CoV1, then it's unlikely that one will exist. Just big pharma taking tax payer money for 'research'.

Sars-CoV2 will rattle around the globe 4 or 5 times before it settles down. In that time it will likely mutate and become horrendous, causing faster deaths that can't be prevented.

Just be super thankful you live on an island that 'somewhat' has the virus under control ATM. 'Supression is the term being used, but elimination is the goal, why else would you shut 25% of the economy?

 

Short story is, banks are on a death watch. Their model is now outdated

Nah, I disagree. They're part of the political machine, the regulations only ever work to their favour. Outside the central bank, they are the only institutions that can "create" currency.

 

Peer to peer lending may seem 'modern', 'hip', and exciting, with all it's apps and the associated BS that comes with that: But at the end of the day, peer to peer can only ever lend at 1:1, minus the operating expenses.

A 'bank' can lend at multiples...... ie for every $1 in deposits, they may lend $7 for example.

 

If you're rich, where are you going to invest? In a p2p scheme where you can only get a lending ratio of less than 1, or buy shares in a bank that returns 10%+ ROI????

We will need to see the death of fiat currency and fractional reserve lending before 'banks' as we know them are outdated. That's approx 10 years away in my guestimate. There's still truck loads of profit to be made in bank shares.

 

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My post was about the RBA stating in their view the banks have enough firepower to withstand shocks that will likely come. CET1 is a concept, and the reserves enough to withstand the losses that any fractional banking throws up in times of stress.

 

The economy is another matter.

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Sure, but we know that stress test are total BS.

I haven't checked for years but our banks have derivatives that are multiples of their market cap: They will fail, no questions asked. All bank stress tests are a joke: You can't lend more than you have, against assets that fluctuate in price and be solvent: it's a mathematical impossibility.

 

But we have the bail out laws, and the bail in laws, for a reason: Canberra doesn't spend hours drafting, arguing and passing laws for no reason.

It's the worst, most miss aligned economy I've ever seen (I'm 40). Yet we're at record highs.... The whole thing is now clearly a scam (as fiat currency is).

The question is when do you move from the fake currency back into hard assets, before it all blows up.

 

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When you post laughable, idiotic drivel day after day don't be surprised to get a little feedback now & then. You have absolutely no credibility on this board & are treated as a joke.

You & your Disney characters. & stop following the Orange man's latest tweets. I don't know who comes out with the weirdest shit.

My head is still spinning about CSL swallowing up all the banks. Perhaps you could ring the CEO & run it past him. Best to wait till April 1.

 

Your teacher would say: must try harder.

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Loving it.

 

If its good enough for Apple why not other tech firms? Including CSL and biotechs. Especially if a structure like Alphabet's (GOOG) is used. A lot of them are worth more than banks and can interact directly with the client digitally. Especially once digital currency is more widely accepted.

 

Don't choke on that bile, loopy. Take some Gaviscon to help with the hurt.

 

 

https://www.cnbc.com/2019/03/26/apples-move...edit-cards.html

 

Apple's move into banking raises the bar for fintech, traditional credit cards

Published Tue, Mar 26 201912:52 PM EDTUpdated Tue, Mar 26 20193:07 PM EDTKey Points

  • Apple is working with Goldman Sachs and Mastercard to launch a credit card. In typical Apple style, it's changing the way the old guard might think about something as common as swiping a credit card.
  • Some say the tech giant could pose a threat to fintech companies and regional banks.
  • "Money is just a form of data, and Apple has been great at managing access to data. They'll take the same approach to money over time," says Ryan Gilbert, general partner at Propel Ventures.
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