Australian banks

MacroBusiness covers Australian banks from the perspective of their macro-economic role, as political economy actors, as investment propositions and in terms of financial stability and capital adequacy. Australian banks have played a crucial role in inflating the Australian property bubble, exist within an utterly privileged position as “too big to fail” institutions and operate within a deeply distorted financial architecture that has Australian tax payers well and truly on the hook in the event of trouble. MacroBusiness seeks to define this role for investors as well as change it in the name of the Australian national interest.

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Macquarie drags taxpayers on global junk binge

Chris Joye has unearthed a spectacular story on Macquarie Bank that leaves one breathless vis Australian prudential oversight: In a February briefing Macquarie revealed that since Brazil established his new group, Corporate and Asset Finance (CAF), in 2009 the bank had invested an astonishing $33 billion in around 500 high yield loan exposures (including $1 billion into

6

APRA soothes on mortgage risks

By Leith van Onselen Heidi Richards, APRA’s General Manager of Industry Analysis, has delivered a speech today entitled A Prudential Approach to Mortgage Lending, which delves into Authorised Deposit-Taking Institution’s (ADIs) mortgage lending and finds that Australia’s ADI’s have significantly improved their risk management practices. Below are the key extracts: Why has APRA committed so

19

Specialist Chinese-language mortgage broker lists

From Banking Day: Specialist Chinese-language mortgage broker N1 Loans has closed its initial public offering, raising equity capital of A$5 million, and will list on the Australian Securities Exchange on March 18. N1 plans to use the proceeds of the float to help invest in a more prominent online presence and increase its marketing activity.

5

CLSA: Sell banks into rally

From Brian Johnson at CLSA, the best in the business: BJ notes that having significantly underperformed since the peak in April 2015 the Australian banks have rallied hard in late February/early March 2016 with the rally likely reflecting a prior degree of “over-shorting” and easier global credit conditions. That said, Australian bank funding costs, both

14

Would you like a free car with that flat settlement?

From the AFR: Lenders are increasingly nervous about lucrative incentives being offered by developers to off-the-plan buyers struggling to pay their deposits, according to lenders and property specialists. Rebates, special conditions, furniture, televisions and cars are among the inducements offered by some developers to ensure that buyers, who typically made a deposit when the project

3

Mirabile dictu: A bank gets a sell rating!

From CLSA: ASIC have commenced proceedings against ANZ for alleged market manipulation in setting the bank bill reference rate on 44 separate days between 9 March 2010 and 25 May 2012. ANZ have rejected the assertions and will vigorously defend itself effectively claiming that “our practices in the BBSW market were consistent with Australian market