Digitalisation of money and the future of monetary policy

June 18, 2018

This article originally appeared on VOX EU on 12/6/2018, written by Peter Bofinger. The digitalisation of money has the potential to change traditional structures of the financial system. This column discusses four areas in which it may have an impact, and argues that while digitalisation will not erode the importance of central banks, banks could…

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RBA has lost control, banks must hike mortgage rates

June 8, 2018

Banks are quite entitled to increase interest rates at any time. However, increasing due to funding cost increases which may be caused by their own lending policies does not reflect well. In the shadow of the Banking Royal Commission perhaps they should hold off, but I doubt it. This article originally appeared on Credit Suisse,…

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Millennials AREN’T killing mortgage broking

May 29, 2018

This article originally appeared on Rate City on 23/5/2018. Australia’s millennials have been accused of killing everything from landline phones to department stores, movie theatres, doorbells and golf, but not the mortgage broking industry, which has more millennial customers than any other demographic. According to the Roy Morgan single source survey, millennials (1976-1990) make up nearly…

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These three big banks are flogging home loans in disguise

May 22, 2018

In the current environment it’s really important to be transparent right along the mortgage value chain. At AMM we’re reducing opacity through a total commitment to transparency. This article originally appeared on The New Daily on 21/5/2018. Online mortgage comparison site HashChing has become the latest in a long string of mortgage websites to launch its…

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The CAD, Australia’s Prosperity, but a Challenge to Manage

May 15, 2018

This article was published on AB&F Daily Online on Monday 14 May 2018. Australia is locked into a growth by debt feedback loop that can only stop with the end of ever-increasing international debt and a system reset; in the meantime borrowing offshore against our housing is critical for growth. Let’s look at the effect…

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Federal Budget 2018: Property owners sitting on vacant land targeted in budget measures

May 9, 2018

It would seem that whilst the current government is not about to touch negative gearing reform, there is subtle reform going on. Last year with restrictions on certain deductions for property investors and this year with restricting deductions on land bankers. Perhaps this will be a continuing process that will continue whomever is in power?…

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Probe exposes Australian banks’ abuse of customers

May 1, 2018

Once trust was assumed, now it must be earned.  According to a 2018 survey only one in three people in Australia trust the banking industry- and this was before the Banking Royal Commission commenced.    Also, an  Ernst and Young survey from 2016 indicates that new entrants and Fintechs have achieved parity with traditional banks when…

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APRA announces plans to remove investor lending benchmark and embed better practices

April 27, 2018

The Australian Prudential Regulation Authority (APRA) today announced plans to remove the investor loan growth benchmark and replace it with more permanent measures to strengthen lending standards. The 10 per cent benchmark on investor loan growth was a temporary measure, introduced in 2014 as part of a range of actions to reduce higher risk lending…

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Brokers split on fintech competition

April 26, 2018

This article originally appeared on Australian Broker on 24/4/2018. More than half of mortgage brokers are not concerned about increased competition from online broking platforms, according to a recent survey. Despite this, almost a third of respondents said they were looking to improve the digital capabilities of their businesses. The survey was completed by MyState…

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The Limits of Interest-Only Lending

April 25, 2018

This is a speech given by Christopher Kent on 24/4/2018. Introduction I’d like to thank the Housing Industry Association for the opportunity to speak to you about the role of interest-only loans. Mortgages on interest-only terms have become an increasingly prominent part of Australian housing finance over the past decade. At their recent peak, they…

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