Bank stocks

[stoploss]

[QUOTE=ynot;811888]

there all trying to get farmers to reduce debt , its a big risk for banks and govt if ag rolls over.[/QUOTE

What scenario would that be likely ?

Mycoplasma Bovis , Foot and Mouth ,Drought , floods plenty of risks , collapse of milk prices ( who knows oil did )

[Tomtom]

In my view Reserve Banks should actually be imploring Commercial Banks and other listed companies to pay dividends if they can. Paying a steady dividend is good counter-cyclical behaviour, people purchased bank shares because they required continuity of income and banks where run accordingly.

[macduffy]

In my view Reserve Banks should actually be imploring Commercial Banks and other listed companies to pay dividends if they can. Paying a steady dividend is good counter-cyclical behaviour, people purchased bank shares because they required continuity of income and banks where run accordingly.

Central banks are more concerned with banks retaining their profits to bolster capital in present circumstances.

[peat]

Central banks are more concerned with banks retaining their profits to bolster capital in present circumstances.

sure no one wants a bank to go under and I guess most shareholders relying on shares for income have an alternative way to fund their lives, but this doesn't sit well with all the statements out there about strength and resilience.

I find the banks accounts a bit overwhelming to analyse however it would appear to me that while there are big provisions either already or imminent the ones we've seen aren't as huge as you'd think they might be which , along with other evidence (some factual some not) says to me that there is none or very little risk of Australian banks going under , provided of course that the post covid19 world goes vaguely according to plan . Naturally their profits will be constrained by impairments and bad debts but they will also be increased in the medium to long term by more lending over a longer time frame as folks struggle to claw their way out of debt.

Regulators are already going easy , Orr has relaxed his increased capital requirement time frame

[Aaron]

In my view Reserve Banks should actually be imploring Commercial Banks and other listed companies to pay dividends if they can. Paying a steady dividend is good counter-cyclical behaviour, people purchased bank shares because they required continuity of income and banks where run accordingly.

Maybe banks could increase the interest they pay to depositors instead.

[Beagle]

Rant about BNZ.

Tried to bank a cheque yesterday. Went to a BNZ smart ATM and with gloves on entered all relevant details and inserted cheque. Machine rejected cheque and spat it back to me. There was a notice that said there was a limit on the dollar amount that could be deposited through a smart ATM but no notice of what that amount was ?

Drove to another BNZ smart ATM thinking it might be different, obviously a waste of time in highsight. Came home and searched on their website for ages, no detail of the limitations are on their website. By this stage I have invested over an hour in this process plus travelling costs. Rang their 0800 number and sat in a queue of more than half an hour only to be cut off. Got back in the queue and about 15-20 minutes later when they finally answered I was told no cheques over $2,000 can be deposited through a smart ATM. Asked why, they said new money laundering rules under Covid 19. Anti money laundering legislation only applies to transactions over $10,000 I told him. He could not explain why the limit wasnow $2,000. Asked how I can deposit the cheque he suggested going to my nearest branch which is open one day a week for just 4 hours. When I suggested there's likely to be a very long queue, (which there most certainly was when I just tried that half an hour ago), probably a 2 hour queue which is what it looked like) all he could do was suggest if you don't need the money wait until lock down 2 protocols when there might be more branches open.

When asked why the BNZ have moved from 2 days cheque clearance to 4 days late last year and now 6 working days which seems completely absurd he could offer no explanation.

BNZ says all over their website they are here for Kiwi's during the lockdown. I would say that's just a public relations bull ****. There is no reason they couldn't open branches more often now with 2 meter distancing protocols. They are after all an essential service. Unless I want to stand in a long queue for several hours I will have to wait for 11 May to bank this cheque and a further 6 working days for it to clear. Before anyone suggests asking for payment by internet banking this client is very old school and doesn't do internet banking. All up I am an least 2.5 hours of time down a rathole with this already and have got nowhere. Thanks for nothing BNZ, your "service" standards and information available on your website and call centre wait times are truly appalling and pathetic. What an absolute shambles.

End of Rant.

Epilogue (I suppose I should be glad I am plenty solvent enough to wait until what will be late May by the time the cheque is cleared) to have this honoured and I know the client well enough that it is highly likely to be honoured. I can't help wondering how less solvent people are getting on...

[macduffy]

provided of course that the post covid19 world goes vaguely according to plan .

But does anyone know what that is? Meanwhile, banks are following their regulators' directions in conserving capital.

Disc: Holding ANZ and WBC.

[macduffy]

What an absolute shambles. End of Rant.

Yes, good to get that off your chest, Beagle!

Banks are very sensitive about such matters since the CBA's ATM debacle last year. No excuse for sending a customer all over town on a false scent, though.

[peat]

how does AML even apply to cheques , they are fully traceable instruments these days , no negotiability at all!

[Beagle]

how does AML even apply to cheques , they are fully traceable instruments these days , no negotiability at all!

Exactly ! Lets not forget this is really National Australia bank and you'd be forgiven for thinking they really do not care about customer service.