The Shifting Sands of the Mortgage Industry

The latest AFG Mortgage Index just released, to December 2017,  really highlights some of the transitions underway in the industry. While the view is myopic ( as its only their data) it is useful. First, there has been an astonishing drop in the number of interest only loans being written, from 60% of volume in … Continue reading “The Shifting Sands of the Mortgage Industry”

ASIC Licenses First Crowd-sourced Funding Intermediaries

The Australian Securities and Investments Commission (ASIC) has licensed the first crowd-sourced funding (CSF) intermediaries under the new CSF regime. Seven companies have been issued with Australian Financial Services (AFS) licence authorisations to act as intermediaries able to provide a crowd-sourced funding service. With the grant of these new authorisations eligible public companies will now … Continue reading “ASIC Licenses First Crowd-sourced Funding Intermediaries”

November Retail Trends Underscores Weak Growth

Australian retail turnover rose 1.2 per cent in November 2017, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.  Black Friday and iPhone X sales drove the outcome says the ABS. This follows a 0.5 per cent rise in October 2017. Some will spruke this as a positive sign. However … Continue reading “November Retail Trends Underscores Weak Growth”

Visa and Dynamics Unveil the World’s First Wallet Card

Will the future of digital money be cardless, as mobile devices pick up the slack? Well, perhaps not as Visa demonstrates a new Internet of Things (IoT) device which holds multiple payment cards and includes a digital display allowing for greater security, instant issuance and on-card alerts or coupons. Innovation, or the last gasp from … Continue reading “Visa and Dynamics Unveil the World’s First Wallet Card”

China implements Basel Committee framework for controlling large exposures, curtailing bank risk

From Moody’s. Last Friday, the China Banking Regulatory Commission published for public comment a draft regulation of commercial banks’ large exposure management in accordance with the Basel Committee on Banking Supervision’s framework. The draft regulation is credit positive for banks because it will quantifiably curtail the shadow-banking practice of investing in structured products without risk-managing … Continue reading “China implements Basel Committee framework for controlling large exposures, curtailing bank risk”

Treasury memo misses the real impact of Labor’s negative gearing policy

From The Conversation. Labor MPs might be rubbing their hands together with glee at a Treasury memo that shows the federal opposition’s negative gearing policy will have a “small” impact on the property market. But insights from behavioural public policy, as highlighted by the 2017 Economics Nobel laureate – Richard Thaler and his colleague Cass … Continue reading “Treasury memo misses the real impact of Labor’s negative gearing policy”

Macroeconomic Blindspot and Zombie Firms

Interesting Panel remarks by Claudio Borio Head of the BIS Monetary and Economic Department, who argues that a core assumption implicit in policy setting is that macroeconomics can treat the economy as if it produced a single good through a single firm. The net effect of this assumption is to drag down interest rates and … Continue reading “Macroeconomic Blindspot and Zombie Firms”

APRA Releases New Mortgage Lending Reporting Requirements

APRA has released the final version of the revised reporting requirements for residential mortgage lending. It comes into effect from March. Gross income will need to be reported (excluding super contributions).  Reporting on self-managed superannuation funds (SMSFs) and non-residents should be included, as well as all family trusts holding residential mortgages. Reporting of refinanced loans … Continue reading “APRA Releases New Mortgage Lending Reporting Requirements”

ABA Says Small Business Saves Billions With Lowest Rates in Decades … But

The ABA says there is some great news for Australian small businesses who are now paying $9 billion less in interest on current loans than compared to the same time in 2011, with the average interest paid the lowest in 20 years. According to RBA data, the past six years have seen significant falls in … Continue reading “ABA Says Small Business Saves Billions With Lowest Rates in Decades … But”

Australians in for a Boon With New Super Changes in 2018

NAB says that Australians who are looking to buy their first home or are preparing for retirement could be in for a windfall in 2018, with a number of key superannuation changes expected to come into effect. NAB Director of SMSF and Customer Behaviour, Gemma Dale said a number of key super reforms are expected … Continue reading “Australians in for a Boon With New Super Changes in 2018”