Cost of funds and banks making up for losses

Discussion in 'Property Finance' started by dabbler, 11th Feb, 2016.

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  1. dabbler

    dabbler Well-Known Member

    18th Jun, 2015
    Sid en e - olympic city
    Hi All,

    With all the action on stock markets recently and what has been happening with oil & how many banks have a stake in oil via loans etc, with all the other things going on, with lenders set to slug us all again due to regulation etc.

    At some point, it would seem our banks need to cut back on investor expectation of an ever growing pot of money, but would not surprise me if they start trying to squeeze more, on us all that is.

    how do you see this all panning out ?

    does anyone know how much our banks here may have out to oil companies ?
  2. Corey Batt

    Corey Batt Finance Strategist

    14th Jun, 2015
    Adelaide, SA
    Morgan Stanley was quoted yesterday estimating circa 33 billion in oil related funding across the banks in Australia, 11 bil of which is with CBA.

    I can't see the oil issues causing a major uplift in rates, the business divisions and exposure is very unequal, so not all banks are affected the same (or at all) - so normal competitive market forces will keep the rates whre they need to be.