BOQ reminds that bad loans are mounting fast

A BOQ warning today:

Expect these warnings to rain down from all banks for the foreseeable future.

David Llewellyn-Smith
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Comments

  1. I am glad I brought gold 3 months ago and diversified my savings (not paper gold) I wouldn’t be so worried if it weren’t for bank bail-in and the not clear wording of it

    • I was thanked for my correspondence regarding the Inquiry into the Banking Amendment (Deposits) Bill 2020 but was told

      “The Committee has decided to accept your document as correspondence. This means that the Committee has noted the issues you have raised and they will inform its consideration of the legislation, but your statement has not been accepted as a submission and will not be published on the Committee’s website. Please note that if you choose to publish your correspondence without the consent of the Committee, it will not be protected by parliamentary privilege.”

      So at this stage I have nothing further to say on the matter.

    • working class hamMEMBER

      Same. Just pulled my cash out. Should have bought gold at the time.
      Just happy knowing that I can get it whenever I need it. $10000 limits on cash withdrawals now.
      If a bank looks like collapsing, getting any sizeable amount of cash out would be impossible.

  2. I dont get it. Who is 3 months over their payment and does not apply for relief or not eligible for it? Is this just another way of saying they are bankrupt and are forced to sell.

    • Hill Billy 55MEMBER

      I understand that BoQ went all in on expanding its loan book down south, hence it has probably increased the risk profile of the portfolio to gain (?) that market. Would be very interesting to see where the provisions are domiciled, if that were possible.

      • frag outMEMBER

        From other articles they were getting into tourism lending as well, so probably impacts there, and crossover across both.

        From their own reports, 90 days past due
        Feb 20 – $291m
        Aug 19 – $312m
        Feb 19 – $287m

        the $112m increase plus Aug 20 bal $who knows? 290-300m?

        Plus the “Covid” provision of $71m that will no doubt be used to mop up some impaired assets.

        Q2 2020 was always going to be early on in the piece, H2 2020 and H1 2021 will be more revealing.