Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

18 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

Banks, behaving badly
mullokintyre
post Posted: May 23 2020, 10:10 PM
  Quote Post


Posts: 2,453
Thanks: 875


Have the rates really hit bottom??
from The OZ
QUOTE
ANZ has hiked its interest rate on two-year fixed owner-occupier loans by 10 basis points to 2.29 per cent, marking the first major bank to increased fixed interest rates since the Reserve Banks emergency rate cuts on March 19

The move has prompted suggestions that longer term bank funding costs a key driver fixed rate pricing may be at or near the bottom of the cycle.

Since May 1, eight banks have increased rates on owner-occupied variable home loan products, while 20 lenders including non-banks increased two-year fixed rates, according to figures by mortgage research house RateCity

Theres no question were close to the bottom of the fixed rate market but some lenders could still potentially shave their rates further in a bid to get new customers in the door, RateCity research director Sally Tindall told The Weekend Australian.

ANZs increase brings it into line with two-year rates offered by NAB and Commonwealth Bank. While ANZ has made the first increase on fixed rates on its home loan portfolio, NAB has slashed its two-year fixed rate for interest only loan by 60 basis points to 2.79 per cent.

Westpac is offering the lowest two-year fixed principal and interest rate of the big four, at 2.19 per cent. The changes do not apply to variable mortgage rates which make up the bulk of ANZs home loan book.

Not sure if this is the bottom or not.
There is still the question as to whether RBA goes down the negative interest rates path.

Mick



--------------------
sent from my Olivetti Typewriter.
 
mullokintyre
post Posted: Apr 30 2020, 04:31 PM
  Quote Post


Posts: 2,453
Thanks: 875


Got an email from NAb this morning with enormously generous offer t

QUOTE
We understand that it's a challenging time for many of our customers. That's why we're reducing credit card minimum monthly repayments to 0.5% of your closing balance or $5 (whichever is greater).
What happens next?
This change will happen automatically on statements issued from 27 April 2020 until at least 24 July 2020. If you have a direct debit set up to pay only your minimum monthly payment we'll automatically debit the reduced amount.

It's important that you have the option to pay less during this difficult time. Please keep in mind that paying more than the minimum monthly payment will help reduce the interest you pay.
Head to nab.com.au/creditcardrepayments for info on ways to set up or change your credit card repayments.


So, anyone who has a minimum automatic deduction will end up paying even more in interest unless they read the fine print.
No mention of a reduction in the appallingly high interest charges on the balance.
The bastards just don't seem to get it.
Do they really think people are going to think the bank is doing them a favour??

Mick



--------------------
sent from my Olivetti Typewriter.
 
nipper
post Posted: Mar 6 2020, 11:18 AM
  Quote Post


Posts: 6,959
Thanks: 2386


In Reply To: mullokintyre's post @ Mar 6 2020, 11:17 AM

Fractional banking.

9 for me and 1 for you.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Mar 6 2020, 11:17 AM
  Quote Post


Posts: 2,453
Thanks: 875


In Reply To: nipper's post @ Mar 6 2020, 09:08 AM

So Nip, whats the chance of us ever having a thread entitled “Banks behaving responsibly”?
Mick



--------------------
sent from my Olivetti Typewriter.
 
nipper
post Posted: Mar 6 2020, 09:08 AM
  Quote Post


Posts: 6,959
Thanks: 2386


This thread is Banks Behaving Badly and I can't see this ending well. An ADI guarantee for $250,000. !! I mean, really.

Talk about Socialising Losses

QUOTE
Xinja Bank, which received a banking licence just six months ago, said it has to stop taking new deposits just a day after kicking off a new funding round and crowing that funds flowing into its high-interest savings account had surged above $300 million.

The fintech neobank said it wanted to shield customers from ultra low interest rates as major banks sliced deposit rates in response to the Reserve Bank's emergency rate cut on Tuesday. It refused to cut the 2.25 per cent deposit rate it has used to lure customers into its accounts.

The government has encouraged the Australian Prudential Regulation Authority to allow neobanks - which have smartphone-based digital offerings and no branches - to enter the market to pressure the major banks. It is a core plank of the government's banking competition strategy after the Hayne royal commission.

But because Xinja has not started to lend yet - it plans to begin making personal loans in June - it cannot earn a "net interest margin". The net interest margin or NIM is the core driver of revenue for major banks and represents the difference between rates charged to borrowers and money paid to depositors.

"We have to limit deposits. We don't have a lending program yet. Obviously, as a new bank, we have to manage costs," said CEO Eric Wilson. "People are joining us so fast we have to control those costs."




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Dec 2 2019, 02:57 PM
  Quote Post


Posts: 6,791
Thanks: 2306


In Reply To: blacksheep's post @ Nov 23 2019, 07:40 PM

The Barangaroo Triangle: inside Westpac’s invisible banking regime
Westpac has been running an invisible banking system, invisible to regulators, where multinational company clients even had their own log-ons and could act like banks themselves. Michael West unpicks the Austrac action and the biggest money-laundering scandal in Australian history.
https://www.michaelwest.com.au/the-barangar...banking-regime/

extract
QUOTE
What we know from Austrac’s court filing is that in recent years $11 billion has moved into Australia without being reported, unseen by regulators. Some of the foreign “correspondent” banks, which had a relationship with Westpac, also had connections with high-risk or sanctioned countries, such as Congo, Iraq, Lebanon, Libya, Ukraine and Zimbabwe.

Austrac describes that one bank “maintained two accounts with Westpac, in its own name, each of which was used exclusively to facilitate payments for two large multinationals and their related companies … each multinational accessed the accounts through the banking logon provided by the correspondent bank”.

Which multinationals are involved has not been publicly disclosed – it isn’t even clear whether Westpac knows who they are, or if they have operations in any sanctioned country.

According to the statement of claim by Austrac, nearly all the unreported transfers came from just one bank, which the agency refers to as “Bank A”. These were largely low-value transfers.

The big transactions and the mysterious Bank B

Far more intriguing are the 36,000 incoming transfers from “Bank B”, and the 13,000 incoming transfers from Banks “C” and “D” combined. These covered the rest of the incoming $11 billion – each transaction worth about $200,000, on average.

Bank B is particularly interesting.

Westpac had set up special arrangements for Bank B and another bank, known as Bank J. Austrac knows that both banks had a “Working Capital Account” with Westpac, wherein “the underlying source of proceeds and beneficial owners are partially concealed” and “funds may be transferred to unidentified third parties”, making the whole process invisible.




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 

Featured Stock Stories





blacksheep
post Posted: Nov 26 2019, 12:58 PM
  Quote Post


Posts: 6,791
Thanks: 2306


In Reply To: early birds's post @ Nov 26 2019, 11:34 AM

Something to keep in mind about those "good divys" every year - which already have been lowered by 3 out of the Big4 recently. WBC cut its final dividend from $0.94 to $0.80, ANZ gave retirees a haircut with a reduction of franking credits, NAB cut their FY dividend by 15% to $1.66. CBA was the only bank to maintain FY dividend @ $4.31.

Bank dividends under threat
Jun 7, 2019 — 12.00am
QUOTE
It is possible the big four banks will lose about $3.5 billion in revenue earned on portfolios of liquid assets as the official cash rate moves lower.

At the end of a huge week for the big four banks, it's time for those reliant on dividend income to think hard about the longer-term implications of official interest rates being lower for longer.

There is no need to panic. But as official rates set by the Reserve Bank of Australia move to 1 per cent and possibly 0.75 per cent over the next six months, there will be enormous downward pressure on bank profitability.


https://www.afr.com/chanticleer/bank-divide...20190606-p51v8l



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
early birds
post Posted: Nov 26 2019, 11:34 AM
  Quote Post


Posts: 12,693
Thanks: 1434


In Reply To: Pendragon's post @ Nov 26 2019, 11:15 AM

if it's super investment, then it is long term......3--5 years, or even a lot longer,
then you will be fine with good divy every year not much to worry about at their current price. imho though!! tongue.gif

ask more info to others as well. hope we can get more peoples to comeout with their thoughts about this thing here as well!!



 
Pendragon
post Posted: Nov 26 2019, 11:15 AM
  Quote Post


Posts: 116
Thanks: 52


In Reply To: blacksheep's post @ Nov 26 2019, 10:57 AM

Well, there goes my Super investment plan!!

Sadly I have no plan B that I am happy with.

 
blacksheep
post Posted: Nov 26 2019, 10:57 AM
  Quote Post


Posts: 6,791
Thanks: 2306


In Reply To: blacksheep's post @ Nov 23 2019, 07:40 PM

Westpac woes a red flag for the big four banks

QUOTE
Westpac's woes suggest there's more pain ahead for the big four banks, given the sector's poor track record in technology investing in the pursuit of short-term profits, warns Hyperion Asset Management chief investment officer Mark Arnold.


QUOTE
"They all have been lagging in terms of technology spending for decades," said Mr Arnold, such that technology spending has been sacrificed in the pursuit of near-term profit, he argued. "They have been trying to squeeze out as much short-term profit as possible."


Look out for lower dividends in the future

QUOTE
The propensity of Australian companies to pay out high dividends to their shareholders has also played a part in the pursuit of short-term profit in a world where "being prepared to take a longer term view is key," according to Mr Arnold

https://www.afr.com/markets/equity-markets/...20191126-p53e3b



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


18 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING