HGH - Heartland Group Holdings

[Snoopy]

His record stays intact.100% wrong.!

I guess this goes back to me suggesting it would take three years years from listing before Heartland got a banking licence, and they received it after one year.

But was I really wrong? I couldn't help notice this paragraph from Tim Hunter's SST article.

"As a new bank, Heartland has been given more onerous capital requirements by the Reserve Bank than the established players. Its tier-one capital ratio - basically the equity as a percentage of risk-weighted assets - must exceed 12 per cent, while the requirement for ANZ and Westpac is 6 per cent."

So although new governor Wheeler granted Heartland a banking licence, it looks more like a learning licence with certain restrictions that do not apply to the big banks. So did Heartland really get a banking licence in the accepted sense? I would suggest Heartland are still driving around with an L plate in the back window while they fulfill they requirement to get a full licence, which could indeed still be years away.

SNOOPY

[percy]

I guess this goes back to me suggesting it would take three years years from listing before Heartland got a banking licence, and they received it after one year.

But was I really wrong? I couldn't help notice this paragraph from Tim Hunter's SST article.

"As a new bank, Heartland has been given more onerous capital requirements by the Reserve Bank than the established players. Its tier-one capital ratio - basically the equity as a percentage of risk-weighted assets - must exceed 12 per cent, while the requirement for ANZ and Westpac is 6 per cent."

So although new governor Wheeler granted Heartland a banking licence, it looks more like a learning licence with certain restrictions that do not apply to the big banks. So did Heartland really get a banking licence in the accepted sense? I would suggest Heartland are still driving around with an L plate in the back window while they fulfill they requirement to get a full licence, which could indeed still be years away.

SNOOPY

HNZ were first to apply under new regulations..While HNZ were saying a banking licence was "just around the corner" you were stating that they had to wait 3 years.They were right.You never checked with them.As is the case with all other banks they have to report to the Reserve Bank.To say it is like a restricted licence is wrong.It is a full bank licence.
What will be interesting to watch is if/when ANZ and WBC have to up their equity.!?

[K1W1G0LD]

I guess this goes back to me suggesting it would take three years years from listing before Heartland got a banking licence, and they received it after one year.

But was I really wrong? I couldn't help notice this paragraph from Tim Hunter's SST article.

"As a new bank, Heartland has been given more onerous capital requirements by the Reserve Bank than the established players. Its tier-one capital ratio - basically the equity as a percentage of risk-weighted assets - must exceed 12 per cent, while the requirement for ANZ and Westpac is 6 per cent."

So although new governor Wheeler granted Heartland a banking licence, it looks more like a learning licence with certain restrictions that do not apply to the big banks. So did Heartland really get a banking licence in the accepted sense? I would suggest Heartland are still driving around with an L plate in the back window while they fulfill they requirement to get a full licence, which could indeed still be years away.

SNOOPY

seeing that you're such a doubter where HNZ are concerned Snoopy , why don't you dialup Heartland management and ask them if they have a Learners or a full licence ......................better yet ring the RBNZ and see what they say. I don't think Heartland need an L plate, they're doing fine!

[Snoopy]

HNZ were first to apply under new regulations..While HNZ were saying a banking licence was "just around the corner" you were stating that they had to wait 3 years.They were right.You never checked with them.As is the case with all other banks they have to report to the Reserve Bank.To say it is like a restricted licence is wrong.It is a full bank licence.

Just to reprise Tim Hunter's quote:

"As a new bank, Heartland has been given more onerous capital requirements by the Reserve Bank than the established players. Its tier-one capital ratio - basically the equity as a percentage of risk-weighted assets - must exceed 12 per cent, while the requirement for ANZ and Westpac is 6 per cent."

What this means is that if Heartland singles out $12,000 of capital, then they can sign up a loan of $100,000 tied to that capital.
If ANZ or Westpac singles out $12,000 of capital, then they can sign up a loan of $200,000 tied to exactly the same dollar amount of company capital.

If that isn't a restriction on Heartland's core activities vis a vis other banks, I don't know what is. No matter how you spin it, the Heartland banking licence does not give Heartand the same privileges as banking licences awarded to ANZ and Westpac!

SNOOPY

[percy]

[QUOTE=percy;416701]

In the aecond to last paragraph, why did he use net yield when for the two other banks he used gross yield. A 9% yield is good and slightly higher than the other banks to reflect the higher risk.

I don't know which is the correct way to describe the article,sloppy or lazy reporting.
Huge difference between gross yield and net yield.
The whole article becomes rather pointless.

Rather funny that Snoopy finds the article of interest,

[Balance]

Sigh....

Snoopy, this is most unbecoming. Do you really want us to answer whether you were wrong or not?

Is it so hard to admit that Heartland earned their licence in a rigorous process that was expensive and time-consuming?

When you are in a hole, stop digging!

Snoopy - most unbecoming of you. Train door is still half open - you have our permission to embark.

[percy]

Had to suppress a laugh on this comment....

You have stronger self control than I do.I am still laughing my head off.!!!

[percy]

When you are in a hole, stop digging!

Snoopy - most unbecoming of you. Train door is still half open - you have our permission to embark.

I think he will decide the train door is half closed.!!!

[Snoopy]

Rather funny that Snoopy finds the article of interest,

Tim Hunter may not have expressed himself in an optimal way. But there is nothing wrong in his article. You should not be so quick to disparage it.

SNOOPY

[mouse]

When you are in a hole, stop digging!

Snoopy - most unbecoming of you. Train door is still half open - you have our permission to embark.

Mind The Gap!