Australian banks

Remember what Evil Anna said when she was appointed as chief banking apologist?

Via S&P: The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) fell to 1.10% in August from 1.17% in July, according to a recent report by S&P Global Ratings.

Amusing stuff!

Cross-posted from The Conversation: I’m not normally a fan of parliament hauling private sector executives before them and asking thorny questions.

Always one for short term thinking: The McGowan government’s plan to fix WA’s disastrous finances has been hit with a massive body blow after the Liberals blocked its controversial gold tax in the Upper House.

Via UBS: Is it the right time to buy CBA?

Australia’s most overly-celebrated land holder is at it again today: Senator Nick Xenophon’s return to South Australian politics is poised to drive a final nail into the coffin of the controversial bank tax.

Via The New Daily: The Commonwealth Bank of Australia has promised to scrap a controversial practice that sees it pay primary schools a commission for every student that signs up to its Dollarmites program.

APRA released its monthly banking numbers on Friday.

The RBA described the 1880s Melbourne land bubble like this: The potential for ‘bubblesʼto have a wider impact strengthened dramatically from the 1880s.

Paver by paver Evil Anna lays her highway to Hell: “South Australia needs jobs to grow its economy, not new taxes that will undermine this objective,” ABA Chief Executive Anna Bligh said.

Via Moody’s: The proportion of Australian residential mortgages that were more than 30 days in arrears (30+ delinquency rate) increased to 1.62% in May 2017, the highest rate in five years. Higher delinquencies raise the risk of mortgage defaults and are therefore credit negative for Australian residential mortgage-backed securities (RMBS).

Hoocoodanode?

From the Mortgage Professionals Australia: Bank’s claims about borrowers’ ‘liar loans’ criticised by industry over methodology and intentions The MFAA and FBAA have harshly criticised a UBS report which claimed 1/3 of mortgage applications were not entirely accurate (which they term ‘liar loans’).

Via Moody’s: Moody’s Investors Service has downgraded to Baa1 from A3 the insurance financial strength rating (IFSR) of Genworth Financial Mortgage Insurance Pty Limited (Genworth Australia).

Dalian is selling today: Big Iron is up anyway: BHP and RIO are both pushing towards break out lines.

Via Moody’s: » Macroeconomic update: We forecast that Australia’s real GDP will grow by around 2.5% for full-year 2017 and 2.7% for 2018.

Via Banking Day: There may be a dash for the exits from the rowdy sanctums of the Australian Bankers Association, with more than one bank jostling for first mover advantage and any accolades from a select set of stakeholders for doing so.

Via UBS: A UBS survey of 907 Australians who took a mortgage in the past 12 months found that just 67 per cent said their application was completely factual and accurate versus 72 per cent a year ago.

Dalian is trying repair overnight damage today: Big Iron is down sharply.

From Credit Suisse: The capital impact of reputational loss This research note builds on our previous work on the valuation impact of CBA’s reputational loss (refer further: “Commonwealth Bank – Valuing reputational loss” 28 August 2017) by now looking at the possible capital impacts.