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  1. #751
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    Apr 2017
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    This always happens. Regulators come in and go heavy handed and over time the regulations get slowly erroded to a point that we are back at close to where they started. All that happens is customers have to declare more things and pay more somewhere along the line. A great day for my holdings I have to say

  2. #752
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
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    9,222

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    Quote Originally Posted by Tomtom View Post
    Is the 'happy time' returning to banking? Australia unwinds it's onerous regulation.
    From the article:

    "As part of a sweeping overhaul of so-called responsible lending obligations, the government will allow banks to rely on income and spending information provided by borrowers when assessing loan applications, rather than doing their own lengthy verifications, (Australian) Treasurer Josh Frydenberg said Friday."

    Apart from reducing the 'double verification' paperwork by customers and banks, the underlying loans are still going to be the same. The article talks about reducing 'excessive risk aversion' by banks. But surely the opposite is true. If the banks don't spend any time evaluating the borrowers loan credentials themselves, there will be greater uncertainty from a bank perspective. So they will be more risk averse. IOW the process of taking out loans will be cheaper (cut by half as the article suggests). But less loans will be approved.

    "Caught in the regulatory cross-hairs, the nation’s biggest lenders became cautious -- stifling credit to the economy even with borrowing costs at record lows."

    Sounds like what happened in New Zealand with the government guaranteeing 80% of new bank loans and urging the banks to have loose purse strings. The problem is, under this arrangement, banks must still shoulder the costs of 20% of any loan that goes bad. So the take up by banks of the new Covid-19 inspired scheme in NZ was less than expected.

    "Said Kyle Rodda, an analyst at IG Markets Ltd. “There’s a cost element to it -- lower compliance costs, lower regulatory costs -- but banks’ bread and butter is lending out money, and the more money you can lend out the more money you’re going to make.” "

    How much money do the banks make on bad loans? Never mind. The CEOs of the big banks commenting in the article think it is a good thing. But will they follow through?

    SNOOPY
    Last edited by Snoopy; 25-09-2020 at 04:08 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  3. #753
    Banned
    Join Date
    May 2013
    Posts
    470

    Default Covid crap

    Went into a branch today in a part of NZ that hadn’t seen a single case in 6 months and is at Level 1 and was asked to sign in using the app. I refused and was asked to sign in manually. I also refused and reminded them it was Level 1 so no requirement to sign in. Was told it was a bank requirement. Walked out and am considering changing banks. I have business personal and trust accounts and have had enough of all the bull**** that passes for H&S in 2020. We have saved 400 lives this year from the lockdown disrupting normal flu (non Covid flu) so maybe let’s just have a lockdown every autumn and destroy the economy as the evidence shows we will hundreds of lives guaranteed!

  4. #754
    Guru
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    Apr 2020
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    landskrona sweden
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    Oh dear.. systems like this are coming and in a world where virus exists there will be more systems. Get used to it and train yourself to see it as an economic hardening of the system. Forget your life before, its not coming back any time soon. See the new world people, its been here for a while as Bill Gates pointed out and we did not take notice. Notice now and get used to a new world, new systems because be thank full this is not as bad as it can get.

  5. #755
    Member
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    Apr 2017
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    442

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    Quote Originally Posted by Arbroath View Post
    Went into a branch today in a part of NZ that hadn’t seen a single case in 6 months and is at Level 1 and was asked to sign in using the app. I refused and was asked to sign in manually. I also refused and reminded them it was Level 1 so no requirement to sign in. Was told it was a bank requirement. Walked out and am considering changing banks. I have business personal and trust accounts and have had enough of all the bull**** that passes for H&S in 2020. We have saved 400 lives this year from the lockdown disrupting normal flu (non Covid flu) so maybe let’s just have a lockdown every autumn and destroy the economy as the evidence shows we will hundreds of lives guaranteed!
    Try opening accounts for your businesses, trusts and personal banking. After the hours of forms, trustee declarations, ID requirements and legal costs etc I'd just scan the COVID app if I was you

  6. #756
    Guru
    Join Date
    Apr 2020
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    landskrona sweden
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    "Try opening accounts for your businesses, trusts and personal banking"


    yes its a nightmare but the westpac saga was appalling and after the GFC we made the mistake or trading the banks in auss.... live and learn and always do your own research... turned out you needed hire investigators... just buy buffet? yep that should have been the game and ive course quantum.

  7. #757

  8. #758
    Guru
    Join Date
    Apr 2020
    Location
    landskrona sweden
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    whatch out with Y H.. may not be as secure as you need , same with bloom B.

  9. #759
    Legend peat's Avatar
    Join Date
    Aug 2004
    Location
    Whanganui, New Zealand.
    Posts
    6,435

    Default

    The group ANZ result is down a lot but it is all explained by provisions and an increase in costs, which is bound to be covid.
    I have no clue but I keep thinking heaps of these provisions wont be required as things eventually return to a post-covid normal. Of course there will be some actual writeoffs, but imo not to the scale of whats being set aside. Only time will tell but for now I am hanging on to my underwater Aussie banks
    For clarity, nothing I say is advice....

  10. #760
    Senior Member
    Join Date
    Oct 2014
    Location
    rural canterbury
    Posts
    1,357

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    Quote Originally Posted by peat View Post
    The group ANZ result is down a lot but it is all explained by provisions and an increase in costs, which is bound to be covid.
    I have no clue but I keep thinking heaps of these provisions wont be required as things eventually return to a post-covid normal. Of course there will be some actual writeoffs, but imo not to the scale of whats being set aside. Only time will tell but for now I am hanging on to my underwater Aussie banks
    I'm still above water on ANZ as I topped up quite a bit in April at $16 and $17. Lucky NZ and Aus have handled COVID well. As you say, there are still likely to be business defaults on the way. Low interest rates won't help for the foreseeable future but the strong housing market protects them from any real carnage - long may that last. They likely to be under pressure for a while. If interest rates ever rise again, banks are likely to be one of the shares that benefit, but that might be a lifetime away.

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