Category: Banks Profit

Banks, Banks Profit

How banks profit from high interest rates as they test ‘social licence’

Higher interest rates mean higher profits for big banks, but could rates actually be lower?

 banks are also ‘testing the limits’ of their social licences by shortchanging savers and failing to be upfront with existing customers about the lowest rates they could possibly offer.

Many savers at big banks are still languishing on rates that have risen far less than the quantum of RBA rate hikes, while new loan customers continue to get better deals than existing ones.

“They need to be careful they aren’t seen to be profiteering,” Humphery-Jenner said.

“When the government puts you in a position where you’re insulated from competition … then it is incumbent upon those companies to act in an appropriate manner.”

Source: How banks profit from high interest rates as they test ‘social licence’

Banking, Banks, Banks Profit

Commonwealth Bank: Shifting goalposts and shutting doors

There was a time when banks didn’t service you. They were government-run and provided the nation a service

Banks are closing, despite an assurance given to the Senate Inquiry by the Commonwealth Bank that it would not close regional branches until the Inquiry concludes at the end of the year. Dale Webster reports.

 

Source: Commonwealth Bank: Shifting goalposts and shutting doors

Banks Profit

Commonwealth Bank breaks pledge to halt branch closures

Despite a promise not to close regional branches, the Commonwealth Bank is bending the rules on the definition of ‘regional’ and closing yet another branch. Dale Webster reports.

Source: Commonwealth Bank breaks pledge to halt branch closures

Banks, Banks Profit

Westpac closes regional bank, despite pledges to the contrary

I’M SURE there will be beers all around for the Westpac communications team who managed to flip the bird at six federal senators this week and pull off one of the most stunning public relations subterfuges I’ve witnessed.

Source: Westpac closes regional bank, despite pledges to the contrary

Banks, Banks Profit

RBA’s rate rise gives free billions to Aussie banks – Michael West

‘’There are two ways to reside in a house. Rent the house from a landlord or rent the money from a bank and become your own landlord. What happens when these prices are out of whack prices will change in the housing market to make them equal again. So if you put interest rates up, the cost of renting money goes up compared to the cost of renting a house and to make them equal again the price of the house must drop”. So any way you cut it, the cost of residing in a house is likely to remain the same before and after these interest rate rises.

Higher interest rates are on their way

Further interest rate rises are expected, with Governor Lowe saying that: “The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time. This will require a further lift in interest rates over the period ahead.” With these rises, banks with billions in their exchange settlement accounts will see higher and higher risk-free profits.

Source: RBA’s rate rise gives free billions to Aussie banks – Michael West

Banks Profit

Criminality of Australia’s banking sector going unchecked

The most systematic white-collar crime of Australian banks against borrowers is still ignored by those in authority and by the media, writes Dr Evan Jones.

Source: Criminality of Australia’s banking sector going unchecked

Banks, Banks Profit, Uncategorized

Banks aren’t passing on the RBA’s full interest rate cut, and while the Treasurer might be furious, there is a reason why – ABC News (Australian Broadcasting Corporation)

Jyske Bank branch in Copenhagen

Australians are carrying the 2nd most personal debt burden in the world will they now be paid to increase it? Wages are and have been stagnant for years production is up so who has profited from growth if personal debt has increased so much? Not the average Australian. Immense effort is being made to force fixed savings into the market. The banks dont lose by the way they continue to charge for their services. Debt is a good way to keep a nation’s work force obedient and compliant while income and wealth gaps grow. It’s what appears to be a respectable form of human bondage under the surface but human bondage nevertheless. (ODT)

Denmark’s third largest lender, Jyske Bank, is in effect paying home owners to borrow at the moment, with a standard mortgage of -0.5 per cent; now that’s value.

Jyske can do this by borrowing money from institutional investors at a negative rate — and there’s plenty of negative interest rate paper floating around at the moment, somewhere north of $US15 trillion ($22.37 trillion) in value — and passing it on to their customers, who then can pay back less than they borrow.

The bank clips the ticket with the usual fees and charges, but leaves the customer gruntled and still makes a tidy profit on the loan.

via Banks aren’t passing on the RBA’s full interest rate cut, and while the Treasurer might be furious, there is a reason why – ABC News (Australian Broadcasting Corporation)

Banks, Banks Profit, Uncategorized

Profits Tumble As Banks Now Required To Have Living Customers Only – The Shovel

https://i0.wp.com/www.theshovel.com.au/wp-content/uploads/2019/02/big-four-banks-620x396.jpg

via Profits Tumble As Banks Now Required To Have Living Customers Only – The Shovel

Banks, Banks Profit

Landmark inquiry finds Australia’s banks are exploiting their most loyal customers

Australia's major banks are about to face a royal commission.

Remember when banks provided a service and didn’t just service the customers?

Well that’s when they were reminded it was a free market and the governments got out of the banking business (old dog}

via Landmark inquiry finds Australia’s banks are exploiting their most loyal customers

Banks Profit

Australia’s banks can afford new tax, says Morrison. So how do they compare globally? | Australia news | The Guardian

The treasurer is defending a levy targeting the big banks. Here’s how they stack up against corporate Australia and the world

Source: Australia’s banks can afford new tax, says Morrison. So how do they compare globally? | Australia news | The Guardian

Banks Profit

The defenders of banks don’t get capitalism. They’re holding us back

Most of Australia’s richest got there in industries subject to political favours, hardly any by inventing something new.

Source: The defenders of banks don’t get capitalism. They’re holding us back

Banks Profit

How banks abandoned the public good, and chose profit over stability. by This is Hell! | Free Listening on SoundCloud

Banks Profit

Macquarie Bank under fire after ‘get rich quick’ pitch leaves investors in debt – ABC News (Australian Broadcasting Corporation)

Macquarie Bank is under fire for engaging a get rich quick-style finance spruiker to promote complex and risky Macquarie financial products to unsophisticated investors.

Source: Macquarie Bank under fire after ‘get rich quick’ pitch leaves investors in debt – ABC News (Australian Broadcasting Corporation)

Banks Profit

Predatory Banking