Banking Royal Commission results

Discussion in 'Property Market Economics' started by Ronald86, 1st Feb, 2019.

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  1. C-mac

    C-mac Well-Known Member

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    The office is glued to the Superbowl today in the background. Can't help but wonder if its strategic to wait until 4pm today for the report-release; since its coverage in the media will be competing with Superbowl news coverage.... hmmm....
     
    C-mac, 4th Feb, 2019
    #81
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  2. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Share price suggest lots of optimism. Wonder if it was scared retail investor who sold out in the morning.
     
    Tofubiscuit, 4th Feb, 2019
    #82
  3. willair

    willair Well-Known Member Premium Member

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    The banks are just starting to go back down again now ,all bar AMP another 4percent down it's all green ..The media may have to suspend their doom gloom and recession talk and try another self-promotion as everyone trusts everyone till they tell you they are trustworthy..
     
    willair, 4th Feb, 2019
    #83
  4. paulF

    paulF Well-Known Member

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    paulF, 4th Feb, 2019
    #84
  5. willair

    willair Well-Known Member Premium Member

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    I would say by the way the Banks are holding their value range the "RC"" findings are already priced into the market,could be wrong but six months time most will ask why they never took the short term risk for a long term some above 9% div's gain..imho..
     
    willair, 4th Feb, 2019
    #85
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  6. willair

    willair Well-Known Member Premium Member

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    willair, 4th Feb, 2019
    #86
  7. euro73

    euro73 Well-Known Member Business Member

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    He’s also quite right. Are you suggesting he gives the truth a spell?
     
    euro73, 4th Feb, 2019
    #87
  8. euro73

    euro73 Well-Known Member Business Member

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    It’s a better than reasonable chance there will be at least SOME changes that tighten borrowing capacity further. But who knows? We know that Hayne really didn’t think much of HEMs so while I don’t expect assessment rates to be increased - one would have to think there’s a reasonable chance he will recommend banks tighten up living costs. Now, we know most banks are already doing this but at the moment they are allowed some discretion. Ie Some (yes, most ) lenders look at bank statements and credit card statements - some don’t. But we will all know more this afternoon and over the next week or two as the Govt provides their responses to whatever the recommendations end up being.
     
    euro73, 4th Feb, 2019
    #88
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  9. Ronald86

    Ronald86 Well-Known Member

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    Same here at office. Need to change to the your money channel!
     
    Ronald86, 4th Feb, 2019
    #89
  10. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    That's the thing, they don't actually need to change the metrics to restrict lending, simply changing how the metrics are verified will do that.

    Get rid of the HEM, make it a requirement that 3 months of statements are collected to verify living expenses, assume everything in those statements is an expense.

    By the time the banks go through this exercise, 99% of applicants will be well above the HEM on their expenses (unless they spend months living on $2 noodles and hiding things) and borrowing capacity will be heavily reduced.
     
    Peter_Tersteeg, 4th Feb, 2019
    #90
  11. kierank

    kierank Well-Known Member

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    If CBA’s advice was bad before, imagine how good it will be when they aren’t being paid for it :D.

    CBA might have to shut down its FP arm and sack a stack of people :eek:. Then the government, the media, their clients will really start to scream ...
     
    kierank, 4th Feb, 2019
    #91
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  12. willair

    willair Well-Known Member Premium Member

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    Reminds me of the sign you still see on some outback Queensland free hold hotels..
    Free Beer Tomorrow..

    [​IMG]
     
    willair, 4th Feb, 2019
    #92
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  13. gary176

    gary176 Well-Known Member

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    u do need stricter lending criteria....borrowers are smart and manage their expenses over 3-6 months just to ensure they don't look high and this way they can get more loans...
     
    gary176, 4th Feb, 2019
    #93
  14. C-mac

    C-mac Well-Known Member

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    Anyone got a link to the ACTUAL report itself? Not a link to an SMH/News/BBC article 'about' the report, but the pure report?

    The .gov.au site URL which houses all other RC's is yet to publish a downloadable PDF of the findings. Or am I missing something? Does the public not get to see the full report in its purest??
     
    C-mac, 4th Feb, 2019
    #94
  15. PandS

    PandS Well-Known Member

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    PandS, 4th Feb, 2019
    #95
  16. willair

    willair Well-Known Member Premium Member

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    willair, 4th Feb, 2019
    #96
  17. MC1

    MC1 Well-Known Member

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    Yeah, suppose i didn't understand it the first 100 times
    And I disagree, measures will be put in place to avoid the 'catastrophe'
     
    MC1, 4th Feb, 2019
    #97
  18. Tofubiscuit

    Tofubiscuit Well-Known Member

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    Tofubiscuit, 4th Feb, 2019
    #98
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  19. Illusivedreams

    Illusivedreams Well-Known Member

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    Banks stocks up 1-1.5% UP
    Before close.

    ;)
     
    Illusivedreams, 4th Feb, 2019
    #99
  20. PandS

    PandS Well-Known Member

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    Game over for broker?
    Easy money day gone?
    Damn banks got off easy
     
    PandS, 4th Feb, 2019
    #100
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