Rising bank funding costs here to stay and worsen

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The AFR did a whack panel on the banks yesterday:

If the morning session of The Australian Financial Review Banking and Wealth Summit was dominated by the issue of how to ensure senior bank executives get their pay docked when they’ve overseen major stuff-ups, the afternoon’s sessions looked at whether housing is the banks’ new Achilles heel.

One concern raised by several panelists was that banks might respond to the findings of the Hayne royal commission by tightening their lending standards, particularly in the critical home-loan market.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.