Bank stocks

**bull....** · 21-05-2020, 02:14 PM

the other big threat to most banks worldwide now is commercial loans

In AUS

Why $63b of commercial office loans have bankers worried

https://www.afr.com/companies/financ...0200520-p54unu

imagine it the same in NZ

and motely fool has expanded on the afr article

The hidden threat to big banks that may be worse than a housing collapse

https://www.fool.com.au/2020/05/21/t...sing-collapse/

no dividends for years

**sb9** · 22-05-2020, 10:13 AM

Mortgage wars on with ASB dropping their one year rate down to 2.85% and 2 year rate down to 2.69%...bring it on!

**Ricky-bobby** · 22-05-2020, 12:13 PM

Wonder when they will start dropping their floating as well?..

**tim23** · 26-05-2020, 08:50 PM

What lit a fire under the banks today?

**Waltzing** · 26-05-2020, 09:52 PM

what lit a fire under banks. Probably a few things but remeber reserve banks have got there balance sheets , i mean there backs... take a look at bank share in the GFC and chart there monthly movements....markets are decoupling in sectors from the economies. The Aussi government drew down less than was though to cover support payments by over half. They are now thinking about extending the support payments in sectors through to september... Vacines trails are going well so markets are going to start looking right through the next 12 to 24 months. This is not your 1928 crash. Nor is it your grand fathers 1930's depression when interest rates were raised and there was no QE.

**Cyclical** · 26-05-2020, 10:03 PM

Originally Posted by tim23

What lit a fire under the banks today?

Good question. Probably the fact I sold my ANZ holding on the bounce last week.

**macduffy** · 27-05-2020, 10:54 AM

The positive report from the RBNZ on the health of the financial sector was probably a factor. Although it refers to NZ and not Aus, the latter take notice of our conditions for two reasons. Their banks have a big stake in NZ and the two countries' economies tend to move in sync , if not at the same tempo.

**Cyclical** · 27-05-2020, 12:18 PM

Originally Posted by macduffy

The positive report from the RBNZ on the health of the financial sector was probably a factor. Although it refers to NZ and not Aus, the latter take notice of our conditions for two reasons. Their banks have a big stake in NZ and the two countries' economies tend to move in sync , if not at the same tempo.

There is some concern about their relationship with China though and the corresponding reliance on all the stuff they pull out of the ground. Even if the relationship was all hunky dory, a downturn in global consumption is going to hurt OZ. But then we'll likely get smashed on the tourism side more, so there's probably not a lot in it.