Banking & Finance


NAB, ANZ and Westpac cut deposit interest rates

Clancy Yeates 6:01 PM   The cuts to what were already very low interest rates for savers come after the big four raised their home loan rates.

Mortgage bond reforms hike funding costs, say bankers

Patrick Brennan from APRA said it has made big concessions in its new securitisation rules to ensure smaller lenders maintain competitive funding sources

Shaun Drummond 5:53 PM   Bankers have raised the prospect of big hikes in funding costs for smaller banks and non-bank lenders if APRA's new rules for securitisation get up.

Overhaul on the cards for disclosure

The findings come at a critical time in the insurance industry.

Ruth Liew 4:13 PM   Insurance product disclosure statements are too complex and failing consumers, according to the Insurance Council of Australia.

Falling bank profits hammer S&P 500 earnings outlook

In aggregate, analysts have lowered fourth-quarter profit forecasts for financial firms by $US2.5 billion over the past three months.

Lu Wang 9:17 AM   The two-quarter retreat in Standard & Poor's 500 Index earnings is about to become a three-quarter swoon, and this time it isn't just because of plunging energy prices.

Morgan Stanley prepares to cut staff

Morgan Stanley generated $US3.75 billion in fixed-income revenue in the first nine months of this year.

Ambereen Choudhury, Michael J. Moore and Hugh Son 6:40 AM   Morgan Stanley is planning a reduction of as much as a quarter of its fixed-income staff after years of revenue declines and insufficient returns.

Forget about relying on the age pension

The government plans to consult more widely on possible changes next year.

Sally Rose 6:11 AM   Treasurer Scott Morrison has put ordinary Australian workers on notice that they should no longer expect to receive an age pension from the government when they retire.

Super industry needs to lift its game: JPMorgan

Benjie Fraser was a trustee of JPMorgan's defined contribution pension plan that manages $8.36 billion on behalf of the investment bank's own employees.

Sally Rose 12:00 AM   Governance standards in Australia's $2 trillion superannuation industry must be improved, according to JP Morgan's international pensions expert Benjie Fraser.

Morgans hit with stricter licence conditions

There were problems with the way Morgans handled market-sensitive information, regulators have found.

Ruth Liew and Joyce Moullakis   Morgans Financial has been slapped with tougher licence conditions after the corporate regulator found a string of problems at the broker.

MyState says fintechs will struggle against small lenders

Melos Sulicich, chief executive of MyState Bank, says small lenders have a major opportunity to beat the big banks.

Shaun Drummond   MyState bank chief Melos Sulicich says ever cheaper financial technology and big banks weighed down by capital imposts are pointing to a bright future for small banks.

Westpac meets investors over pay stoush

Westpac has been criticised for putting software write-off charges 'below the line'.

James Eyers and Clancy Yeates 12:15 AM   Several large fund managers were on Monday seeking meetings with Westpac to discuss its accounting policies and said they expect to make a decision about how they will vote at next Friday's AGM in the coming days.

Housing loan growth dips below threshold

Lending to property investors has emerged as a key concern over the last year.

Clancy Yeates   The value of outstanding loans to property investors rose 9.7 per cent in the year to October, which was the slowest annual expansion since September last year.

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Tyro wants to beat the big banks at small lending

Tyro CEO Jost Stollman with new non-executive director Catherine Harris in Sydney.

Shaun Drummond   Veteran bank fighter Tyro Payments is turning itself into the first independent bank in Australia targeted at small business backed by $100 million from big name investors including Atlassian's Mike Cannon-Brookes.

Westpac investors urged to vote 'no' on pay

Gail Kelly was the biggest beneficiary of the earnings per share hurdles being met, Ownership Matters said.

Clancy Yeates   Westpac shareholders are being urged to vote against its remuneration report by a leading governance advisory firm.

$800m squeeze on card fees to hit banks, airlines

The Reserve Bank is keen to stomp on excessive surcharging.

Shaun Drummond   Banks and airline executives are bracing for up to $800 million dollars to be slashed from the estimated $3 billion they get from merchant credit card fees and surcharges.

Australia lags on 'P2P' payments

New figures show 38 per cent of people still use cash for payments of more than $100.

Clancy Yeates   Australia is heavily reliant on old methods such as cash, cheque or electronic bank transfers for payments between people, or P2P payments.

HSBC whistleblower sentenced to five years in jail

HSBC's reputation took a hammering after it was revealed its Geneva private banking unit helped clients avoid paying millions of dollars worth of taxes.

The former HSBC employee who leaked information on large-scale tax evasion at the bank has been sentenced to five years in prison for aggravated industrial espionage.

CBA compensation executive moves to new role

CBA has appointed a new executive to run its compensation scheme for customers who received bad financial advice.

Clancy Yeates   The Commonwealth Bank has appointed a new head of its compensation scheme for customers who received dodgy financial advice, a program it expects to continue running for another year.

Fintechs too keen on banks' 'bits and pieces': ANZ

ANZ Bank's technology chief says there is an opportunity for start-ups to target big events, like buying a house, rather than specific products.

Clancy Yeates   ANZ's technology chief says start-ups trying to challenge banks are too often focused on pinching small pieces of business.

IOOF feels heat from shareholders

IOOF chief executive Chris Kelaher confirmed the company is the subject of an investigation by ASIC.

Sarah Danckert   IOOF has been lambasted at its annual meeting by its shareholders for not doing proper due diligence on businesses it acquired that the company says now are the root of its troubles.

Up to 12,000 vocational students in limbo

Vocational training students face an uncertain future after the collapse of a major provider.

Sarah Danckert and Benjamin Preiss   Collapse of major private vocational education provider could see colleges close over next 48 hours.

OzForex board backs Western Union bid

Richard Kimber says Western Union looks like a highly credible bidder.

Shaun Drummond   OzForex's board has agreed to support Western Union's $880 million offer for the company.

Telstra HQ has questions for Telstra Super

Telstra has issued a "please explain" to its corporate super fund over its handling of a senior investment manager.

David Ramli   Telstra head office has confirmed it is seeking answers from those responsible for running its corporate superannuation fund.

Equity from family home could fund aged care

Association of Superannuation Funds chief executive Pauline Vamos wants the industry to help members be better prepared to deal with health and aged care costs.

Sally Rose   ASFA argues that one of the areas where super funds need to innovate is in the development of financial products that draw on housing equity "through mechanisms such as equity release products, downsizing, or contingent loans".

BoQ chief hoses down excited analysts

Bank of Queensland managing director Jon Sutton says the bank is doing better than its rivals, but its outlook is not quite as rosy as some believe.

Shaun Drummond   Bank of Queensland chief Jon Sutton politely hosed down some overly rosey analyst expectations of improved earnings on the back of hikes to interest rates.

Banks win relief from securitisation crackdown

About $30 billion was raised in 2014 by turning mortgages into residential mortgage-backed securities to sell as bonds to investors.

Shaun Drummond   Banks have won a reprieve from changes to securitisation rules that threatened to remove a major funding source and force smaller lenders to merge.

Lessons for fintech disrupters from two industry veterans

SocietyOne's Mitchel Harad says start-ups need to get more hungry and think bigger.

James Eyers   The chief marketing officer of leading P2P lender SocietyOne and the chief executive of payments disrupter Tyro say start-ups need to think more strategically about the talent they hire and should stop trying to reinvent the wheel.

PayPal shoppers will be able to pay via Eftpos

PayPal has become a member of eftpos and plans to connect to its real-time payments infrastructure next year.

Clancy Yeates   Shoppers using PayPal are set to be able to make real-time payments via Eftpos as the local pioneer of electronic payments pushes into online transactions.

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ECB could charge banks for hoarding cash

Even buying rebundled loans at risk of non-payment has been discussed, although such a radical step is highly unlikely for now.

Euro zone central bankers could stagger charges on banks hoarding cash or to buy more debt to bolster efforts to boost the area's economy.

Adele Ferguson

CBA's $80 million compo claim should come with penalties

Adele Ferguson - dinkus - thumbnail - dink

Adele Ferguson   A week after saying it wanted to be known as the 'ethical bank', CBA has had to refund $80 million in compensation.

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MasterCard open to all payments newcomers

Ling Hai says MasterCard wants to serve all the stakeholders, whether they are somebody like Apple or Android, or an individual consumer.

Shaun Drummond   MasterCard co-head of Asia Pacific Ling Hai says the company wants to accommodate all the new players in payments, including Apple and Google, apparently confirming a split with Visa, which looks to be siding with the banks in their fight with Apple.