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Financial Stability Review April 2021
Financial Stability Review APRIL 2021 Financial Stability Review APRIL 2021 Contents Overview 1 1. The Global Financial Environment 5 Box A: The Transition Away from LIBOR 16 2. Household and Business Finances in Australia 23 Box B: Risks in Retail Commercial Property 32 3. The Australian Financial System 37 Box C: What Did 2020 Reveal About Liquidity Challenges Facing Superannuation Funds? 48 4. Domestic Regulatory Developments 53 5. Copyright and Disclaimer Notices 59 The material in this Financial Stability Review was finalised on 8 April 2021 and uses data through to 8 April 2021. The Review is published semiannually and is available on the Reserve Bank's website (www.rba.gov.au). The next Review is due for release on 8 October 2021. For copyright and disclaimer notices relating to data in the Review, see the Bank's website. The graphs in this publication were generated using Mathematica. Financial Stability Review enquiries: Secretary's Department Tel: +61 2 9551 8111 Email: [email protected] ISSN 1449–3896 (Print) ISSN 1449–5260 (Online) © Reserve Bank of Australia 2021 Apart from any use as permitted under the Copyright Act 1968, and the permissions explicitly granted below, all other rights are reserved in all materials contained in this publication. All materials contained in this publication, with the exception of any Excluded Material as defined on the RBA website, are provided under a Creative Commons Attribution 4.0 International License. The materials covered by this licence may be used, reproduced, published, communicated to the public and adapted provided that the RBA is properly attributed in the following manner: Source: Reserve Bank of Australia 2021 OR Source: RBA 2021 For the full copyright and disclaimer provisions which apply to this publication, including those provisions which relate to Excluded Material, see the RBA website. -
The Rise of the Neo-Bank
The rise of the neo-bank yieldreport.com.au/insights/the-rise-of-the-neo-bank/ 13 January 2020 By guest contributor Jake Jodlowski, Principal, Atchison Consultants Given the continued reputational damage suffered by the big four Australian banks throughout and post the Banking Royal Commission hearings, bank customers and investors may be looking for alternatives. Whilst still in its infancy, Australia’s banking and credit start-up sector has grown leaps and bounds in recent years, with Afterpay Touch Group (ASX: APT) and Zip Co Limited (ASX: ZIP) being high-profile examples. Although the “buy-now, pay-later” (BNPL) sector has received most of the media coverage, the development of so-called “neo-banks” has also started to gain momentum. Neo-banks are best described as traditional banks without a bricks and mortar presence, with their entire offering supplied through digital means, usually through an app and on-line platform. They are fully functioning deposit-taking institutions and therefore fall under the supervision of the Australian Prudential Regulation Authority (APRA). APRA must provide a license before an institution may accept customer deposits. An unrestricted banking license permits a corporation to operate as a “banking business” and therefore an authorized deposit-taking institution (ADI) without restrictions under the Banking Act 1959. Part 5 of the Banking Act defines “banking business” as consisting of both taking deposits (other than as part-payment for identified goods and services) and making advances of money, as well as other financial activities prescribed by regulations made under the Banking Act. The arrival of neo-banking in Australia follows the emergence of start-up banks like Monzo and Starling in the UK. -
Market Insight – October 2020
SYDNEY MELBOURNE Level 15 Level 9 60 Castlereagh Street 41 Exhibition Street SYDNEY NSW 2000 MELBOURNE VIC 3000 Tel 61 2 9235 9400 Tel 61 3 9653 8600 Market Insight – October 2020 The Road Out Returning to Normal There is movement at the station for the word had passed around… that the market is open and the city of Sydney is keenly welcoming back its workforce. Ok, so not back to full capacity just yet, but we have seen a number of funds, banks & professional services firms return in some form to the office – week on/week off, book your desk with capacity % limits, split teams & floors, the list goes on. As a result, the corresponding increase in face to face meetings in offices, coffee shops or even over lunch - dare we say it is feeling almost a little more “normal“ around town. We at JMES have a sense that many are yearning to be back in the office in some form. The camaraderie created by spending time with colleagues side by side in the trenches surely trumps the back to back monotony of non-stop Zoom calls tied to a laptop at home. So, what next for 2021? We have all seen the high-profile new entrants in Barrenjoey & Jarden providing some market disruption. But there have also been other good examples of clients (funds, banks, corporates and government agencies) committed to completing hiring processes in Q3 and into Q4 – so whilst certainly not back to 2019 volumes, there is positive hiring momentum. A number of our clients have kicked off processes to ensure starters in place for Q1 of 2021, and notably, these are not just replacement hires but newly created roles, surely providing a level of confidence heading into the new year. -
Additional Cardholder(S) Request Form
Additional Cardholder(s) Request Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945 Important Information things you should know as the Primary Cardholder • You may nominate up to three Additional Cardholders, aged 16 or over, to be authorised by Bankwest to operate on your Card account. • If the nominated Additional Cardholder(s) are not existing Bankwest customer(s) we will need to confirm their identity. For details on identification requirements, please contact our Customer Help Centre on 13 17 19 or refer to bankwest.com.au • All transactions on your Card account authorised by the Additional Cardholder(s) will be treated as having been authorised by you. You will be responsible for these transactions. • If you have other accounts linked to your Card account, please discuss account access arrangements at your local Bankwest store or contact our Customer Help Centre on 13 17 19 prior to lodgement of this request. • The Request can either be returned to your local Bankwest store ________________________ (include store name if this is where you are returning it), or mailed to Cards Services, Reply Paid 8411, PERTH BC WA 6849. • Once your Request is approved, the card(s) will be issued to you to distribute to your nominated Additional Cardholder(s). Section 1 – Primary Cardholder Details Title Given name(s) Surname Card number ||||||||||||||| Section 2 – Additional Cardholder Details Additional Cardholder 1 Title Given name(s) Surname Date of birth Gender Male Female Home phone -
It's Personal
SIMON PUGH & PETER WOODS QLM Label Makers BOQ Business Banking customers It’s personal LYNNE POWER BOQ Owner-Manager KATIE KOCHANSKI Daisy Hill branch BOQ customer since age 7 Shareholder Review 2010 BOQ SHR 2010 FA - PRINT.indd 2 21/10/10 11:30 AM JONAH & AMBER Community members SHIRLEY KOLPAK Shareholder It’s personal BOQ SHR 2010 FA - PRINT.indd 3 21/10/10 11:30 AM CONTENTS 1 Operational overview 3 Acquisitions 4 Financial highlights 7 Chairman’s report 11 Managing Director’s report 15 Community 17 Customers 17 Environment 18 Employees 19 Executive team 21 Your Board 25 Remuneration overview 26 Financial calender BOQ SHR 2010 FA - PRINT.indd 4 21/10/10 11:30 AM BRAND RELAUNCH In February 2010, BOQ launched At BOQ, most of our branches are run by local a new brand promise: Owner-Managers. This means they’re running your own personal bank a small business, so they get what it means to The new brand was the culmination of deliver personal service. So we really can deliver an 18 month “inside out” brand review, on our promise of being your own personal bank. where both staff and customers helped The brand relaunch also represented the to really define what makes BOQ different perfect moment in time to reintroduce ourselves to the other banks. The overwhelming as BOQ, rather than the state-centric name of response was that for us, it’s personal. Bank of Queensland. Over the past decade, we have expanded right across Australia. And it all started with this simple question. -
September 2019
September 2019 Case studies, statistics, research and recommendations are provided "ASIS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. The actual costs, savings and benefits of any recommendations or programs may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Stage3 is not responsible for your use of the information contained herein (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Stage3 makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party's intellectual property rights. To the extent permitted by applicable law, Stage3 shall not be liable to a client or any third party for any damages under any theory of law, including, without limitation, any special, consequential, incidental or punitive damages, nor any damages for loss of business profits, business interruption, loss of business information, or other monetary loss, even if advised of the possibility of such damages. 30% $970,000 $9 $967,576 $8 $965,000 Millions 25% Millions $7 $960,000 20% $6 $955,000 $5 15% $950,000 Deposits Total $4 10% $3 $945,000 $2 -
View Annual Report
2018 ANNUAL REPORTYear ended 31 August 2018 Annual Report 2018 1 CONTENTS Message from the Chairman and Managing Director & CEO 5 Directors’ Report Directors’ Details 8 Operating and Financial Review 12 Remuneration Report Introductory Message 60 Remuneration Report 62 Lead Auditor’s Independence Declaration 90 Financial Report Income Statements 93 Statements of Comprehensive Income 94 Balance Sheets 95 Statements of Changes In Equity 96 Statements of Cash Flows 100 Notes to the Financial Statements 101 Other Information Directors’ Declaration 162 Independent Auditor’s Report to the Members 163 Shareholding Details 170 Shareholder Information 173 5 Year Financial Summary 174 Glossary 175 Bank of Queensland Limited ABN 32 009 656 740 AFSL NO. 244616 CHAIRMAN AND MANAGING DIRECTOR & CEO’S 2018 MESSAGE ABOUT THIS REPORT This 2018 Annual Report (Report) incorporates the Group’s audited financial statements and other statutory disclosures. The Report is lodged with the Australian Securities Exchange (ASX). Bank of Queensland (BOQ) is publicly listed in Australia. The financial statements have been prepared in accordance with Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Unless otherwise stated, the Report encompasses all BOQ activities for the financial year commencing on 1 September 2017 and ending 31 August 2018. All monetary values in this document are presented in Australian dollars, which is the Bank’s functional currency. OUR 2018 REPORTING -
Methodology Report
Mozo Experts Choice Awards Deposits 2019 Every day, Mozo keeps track of thousands of products in banking, insurance and energy. Unlike some other awards, providers don’t ‘enter’ the Mozo Experts Choice Awards nor do they pay to be considered. Our in-house team of experts analyse all the product data they’ve been tracking and scour the market to see if there are any other worthy candidates. Then we use our data and our experience to make a hard-nosed assessment of those products, to identify which offer great value or market-leading features. We recognise the leading products with the Mozo Experts Choice Awards. ● For product providers, a Mozo Experts Choice Award is a thoroughly researched third-party endorsement of their product. ● For consumers, the Mozo Experts Choice Awards badge is a sign that a product is among the leaders in the market, and is worthy of consideration. This report lists the winners and explains the judging methodology for our 2019 Deposit awards. 1 Deposits - 2019 Winners Transaction Accounts Everyday Bank of the Year Exceptional Everyday Account Bank of Sydney Everyday Saver Account Bankwest Hero Transaction Account Bankwest Qantas Transaction Account BOQ Specialist Everyday Plus Account Citi Global Currency Account Citi Plus Transaction Account ING Orange Everyday Macquarie Platinum Transaction Account Macquarie Transaction Account UBank USaver Ultra Transaction Account Up Bank Everyday Account Best New Transaction Account Citi Global Currency Account 2 Student Bank Account Community First Credit Union Student -
Australian Major Banks FY2019 Results
Challenges, choices and complexities Australian major banks F Y2019 results November 2019 “Bankprofitabilityisunderthreat,ROEhashalved overthepast15years.NIMshavehalvedoverthat period.Wearenowmuchclosertoourcostof equity.Theabilitytoholdthemachinetogetheras itis...isunsustainable.Ithinktheideathatthese universal,mass-marketbanksaregoingtocontinue tothrive,Idon’tagreethat’sthecase.Iamnot sayingthere’sgoingtobenone,butIdon’tbelieve thatthisissustainableinthefuture.’’ Shayne Elliott CEO,ANZi Growthwasa challenge Efficiencyiscritical Cashprofitdeclinedby Total income Total expenses declined by 3.7% increased by 0.8% 7.8% Creditriskincreasing Lendinggrowthhasslowed OntracktomeetAPRA’s ‘unquestionablystrong’ (90DPD+GIA)/GLA Total average increased by interest earning CET1 14 bps assets 3.3% target of 10.5% Source:FY2019resultsandinvestorpresentationsforANZ,CBA,NABandWBC:Deloitteanalysis. Challenges, choices and complexities | Australian major banks FY2019 results Majorbanks:FY2019results AtypicalAustralianbankingreportingseasonafewyearsago Ontopofthis,bankshavehadtoimplementAPRA’sBanking wascharacterisedbyhighretailbankingReturnonEquity ExecutiveAccountabilityRegime(BEAR)effectivefrom1July2018. (ROE),positivejaws,lowerbaddebts,andabovesystem Withintensivecompetitivepressuresfrominternationalbanks mortgage growth. and non-traditionalplayers;‘zerobound’interestanddepositrates; SolidGDPgrowth,highimmigrationintake,andaresilientjob highercapitalrequirementsforNZbusinesses;continuedlarge markethaveprovidedafavourablebackdroptotheAustralian remediationprograms,andthepermanentincreaseinregulatory -
(2019). Bank X, the New Banks
BANK X The New New Banks Citi GPS: Global Perspectives & Solutions March 2019 Citi is one of the world’s largest financial institutions, operating in all major established and emerging markets. Across these world markets, our employees conduct an ongoing multi-disciplinary conversation – accessing information, analyzing data, developing insights, and formulating advice. As our premier thought leadership product, Citi GPS is designed to help our readers navigate the global economy’s most demanding challenges and to anticipate future themes and trends in a fast-changing and interconnected world. Citi GPS accesses the best elements of our global conversation and harvests the thought leadership of a wide range of senior professionals across our firm. This is not a research report and does not constitute advice on investments or a solicitations to buy or sell any financial instruments. For more information on Citi GPS, please visit our website at www.citi.com/citigps. Citi Authors Ronit Ghose, CFA Kaiwan Master Rahul Bajaj, CFA Global Head of Banks Global Banks Team GCC Banks Research Research +44-20-7986-4028 +44-20-7986-0241 +966-112246450 [email protected] [email protected] [email protected] Charles Russell Robert P Kong, CFA Yafei Tian, CFA South Africa Banks Asia Banks, Specialty Finance Hong Kong & Taiwan Banks Research & Insurance Research & Insurance Research +27-11-944-0814 +65-6657-1165 +852-2501-2743 [email protected] [email protected] [email protected] Judy Zhang China Banks & Brokers Research +852-2501-2798 -
DEBIT INTERCHANGE REFORM SUBMISSION September 2002
NATIONAL AUSTRALIA BANK DEBIT INTERCHANGE REFORM SUBMISSION September 2002 Page 1 of 5 NATIONAL AUSTRALIA BANK - DEBIT INTERCHANGE REFORM SUBMISSION Sep 02 1. Introduction The National fully supports the need for reform of debit card interchange and has been an active participant in the Eftpos Industry Working Group (EIWG) formed at the behest of the Reserve Bank of Australia (RBA). We believe that the objective of this reform should be to achieve a simpler more efficient and transparent pricing regime. We agree with the view expressed by the RBA and Australian Competition and Consumer Commission (ACCC) in their paper A Study of Interchange Fees and Access (“the Joint Study”) that the debit card network in Australia no longer needs an interchange fee. Furthermore we have always been of the opinion that there should be simultaneous credit card and debit card reform. This submission set out the background to the reform process, the options for reform and our views on it in more detail together with their rationale. It is made on the basis that credit reform occurs as per the access regime and standards issued by the RBA. The National reserves its position in relation to making further submissions on various matters raised both in this submission itself, and in general in relation to the overall progress of the RBA’s program of regulation. 2. Reform Process Background On February 19th 2002 the Reserve Bank of Australia convened a meeting of financial and selected other institutions that were major participants in the debit card network. At that meeting the RBA questioned participants that “whether an interchange fee is needed at all, given that some successful Eftpos systems, such as those in Canada and the Netherlands, operate without an interchange fee”1. -
September 2018
The definitive source of news and analysis of the global fintech sector | September 2018 www.bankingtech.com ELEMENTS OF FINTECH Pure in substance FOOD FOR THOUGHT Ecosystem is not a safe word EXCLUSIVE INTERVIEW: YVES TYRODE, BPCE A whole new digital strategy FINTECH FUTURES BT_AFS Transformation Partner_Final_Layout 1 8/20/2018 9:42 AM Page 1 IN THIS ISSUE Your Core Lending Transformation Partner With hundreds of implementations on time and on budget. Contents AFS System Capabilities •End-to-End Credit Processing NEWS 04 The latest fintech news from around the globe: •Scaleable & Agile the good, the bad and the ugly. •Mobile Enabled 17 Interview: Serena Smith, FIS Being at the heart of the exciting, changing •Real-Time world of payments. •Digital 18 PayTech Awards 2018 Celebrations, winners, photos – all the best bits! •RPA, ML & AI 22 Lendtech vendor spotlight: AFS Innovating and transforming the credit •Data Integrity process globally. •Cyber Security & Risk 23 White paper The state of IT incident response in financial services. •Web Services/APIs for Bank Ecosystem 30 Food for thought •And Much More Fellow bankers: “ecosystem” is not a “safe word”. 33 Spotlight: Sunrise Banks A US bank that is “social enterprise first”. AFS is where technological innovation meets financial services expertise, 34 Case study: Afghanistan International Bank offering the latest in core lending with advanced credit process Facing challenges far more extreme than most banks around the globe. management that is operational in multiple, large banks. We provide 38 Interview: Yves Tyrode, BPCE unique, industry-leading solutions with proven successes to help you On a mission to deploy a whole new digital strategy.