RBA Chief says we need risk
Reserve Bank of Australia Governor Glenn Stevens has been speaking to delegates at a banking conference in the US and has called for regulations and banking reform to be sorted out swiftly to avoid being caught unaware by the next financial crisis. Mr Stevens said that learning lessons from the past, and getting the structures in place to enable banks in particular to better cope with crises should be a priority. He also said that regulation should not stop risks being taken as, to a point, risks advance society. He said that not enough entrepreneurial risks are being taken, but when they are we should know who bears that risk. Read the full story.
Queen’s Birthday gift to markets
It was a holiday for the Australian share market but the majority of the world was trading and things were generally positive after some good economic news over the weekend. The US employment figures on Friday boosted shares there – with a knock-on effect felt globally. Those figures, together with stronger-than-expected growth in Japan’s economy and some mixed numbers from China all mean that Tuesday’s trading should start on a high. Read the full story.
Banks cut back high risk home loans
Those seeking mortgages with less than a 5% down payment may find it near impossible to arrange one. Banks are seemingly cutting back on high risk property loans. There are some signs, though, that non-bank lenders are filling the gap left. Regulators have urged banks to be cautious to the risks of low interest rates and a strong market. The mortgage market is currently at $1.3 trillion. Read the full story.
Got cash in an inactive bank account? Are you sure?
The Australian government has cashed in to a record level from inactive bank accounts. Under the rules, an account that has not been active for three years can be emptied by the Treasury. Figures from the Australian Securities and Investments Commission show that the federal government pocketed $360 million from unused accounts since the rules changed a couple of years ago. There is debate about the rule changing to five years of inactivity although that is still 2 years sooner than under the old rules. Read the full story.
New Zealand exports will drop
A short-term drop in exports has been predicted by New Zealand’s Ministry for Primary Industries.
Figures for 2013/14 show a year of high levels of output and prices, especially with the demand for dairy. However, the current year is likely to see a drop of around $2 billion from the $37.7 of last year, but will then see steady recovery over the following three years to surpass that figure. One of the main factors for the drop is the falling dairy prices globally. Read the full story.
RBA Chief says we need more risk... markets set for a good start after the holiday weekend... is your inactive bank account now empty?... and New Zealand prepares for an economic blip...