Banking Summit: Business is a better home for bank lending than houses

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 90%

المملكة العربية السعودية أخبار أخبار

المملكة العربية السعودية أحدث الأخبار,المملكة العربية السعودية عناوين

A shift out of low-margin home lending would release a mountain of capital for Australian firms of the future.

Already a subscriber?My father was a lawyer, not a banker, by trade – yet he started two banks. Frustrated by how difficult the citrus fruit farmers of 1980s Southern California found it to get a business loan from the majors, he and some associates started a bank catering to local small businesses. It did well, so they sold it.

In the short term, the economic and monetary policy cycle which powered our banks into near-record earnings last year is on a decidedly downward swing. Australia’s economy is slowing, seemingly stuck in a per-capita recession, while unemployment ticks above 4 per cent for the first time in two years and mortgage arrears rise.

But amid a cost-of-living crisis, this clear discrepancy between what the banks were charging customers and what they were paying customers could only be sustained for so long. Pressure to raise deposit rates, as well as an extremely competitive mortgage market, have seen net interest margins fall off recent highs.

The shift towards business lending is also being encouraged by longer-term uncertainty over the state of the housing market, with community concern over the impact of housing affordability and inadequate supply reaching a fever pitch best summarised by the NSW Productivity Commission’s recent statement that Sydney risks becoming “a city with no grandchildren.”

 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.
لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:

 /  🏆 2. in SA

المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.

Australian Financial Review Business Summit: Why inflation and rates are set to ‘rebound higher’Expect interest rates to fall, but don’t expect them to stay there. That’s the big picture view of macro experts at the AFR Business Summit.
مصدر: FinancialReview - 🏆 2. / 90 اقرأ أكثر »

Business Summit: How Treasurer Jim Chalmers says Labor is modernising the economyThe Albanese government will make our economy more productive by easing compliance costs on business where we can, we will abolish hundreds of nuisance tariffs.
مصدر: FinancialReview - 🏆 2. / 90 اقرأ أكثر »

Financial Review Business Summit: Strong leaders should be assertive, forward-thinkingLucinda Holdforth and NIB CEO Mark Fitzgibbon tell the AFR Business Summit leaders should be assertive and have clear goals for the future; Holdforth warns companies against being too political. Follow updates here.
مصدر: FinancialReview - 🏆 2. / 90 اقرأ أكثر »