Banking & Finance

 

Banks back away from 'last-resort' compo scheme

Sarah Danckert 12:51 AM   Financial planners who give poor advice to clients won't be bankrolled by Australia's big banks.

Westpac pulls out of funding payday lenders

Westpac is pulling the plug on financing payday lenders.

Clancy Yeates and Shaun Drummond 9:14 PM   Westpac will no longer finance payday lenders, a move that will force companies including Cash Converters and Money3 to obtain some of their funding elsewhere.

Women face an even bigger hurdle to $1m nest egg

ASFA boss Pauline Vamos wants workers to be realistic about how much money they will need in retirement, women especially may need to save more than they think.

Sally Rose 8:30 PM   As the debate rages over the claim that $1 million is needed to fund a comfortable retirement, experts from all sides have warned that women in particular must take a more active role in managing their superannuation goals.

80 super funds should be closed

Chant West head of research Ian Fryer has called on the regulator to force around 80 'sub-scale' super funds to fold.

Sally Rose 8:29 PM   More than 65 per cent of the simplest superannuation funds are too small to deliver benefits and should be closed or merged, according to research firm Chant West.

Bank of Tokyo-Mitsubishi wants to lend more in Australia

Go Watanabe, and Nobuyuki Hirano from the Bank of Tokyo-Mitsubishi, in Sydney.

James Eyers 8:18 PM   In the traditionally conservative and relatively staid world of Japanese banking, a shindig by the Bank of Tokyo-Mitsubishi is symbolic of a growing confidence.

Stop meddling in Far North Queensland insurance: Suncorp

Patrick Snowball, CEO of Suncorp Group, has delivered his final results at the company.

Ruth Liew 7:27 PM   Suncorp Group has posted a net profit of $1.13 billion for the year to June – an increase from last year's $730 million despite the insurance giant recording its worst year for natural disaster events.

$2.5m cap on super gains support

Actuaries Institute superannuation committee head and Towers Watson boss Andrew Boal has added his voice to the call for a $2.5 million cap on super.

Sally Rose 5:17 PM   Peak bodies representing retail and industry super funds, actuaries and the Grattan Institute have backed a call to limit retirement balances to $2.5 million or lower.

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Suncorp reports results ahead of the pack

Suncorp's Patrick Snowball is shedding his red 1975 Triumph Stag.

Ruth Liew 11:15 AM   Suncorp Group is extending its cost cutting and lean practices to its financial reporting - a move that will see the bancassurer report its earnings weeks earlier and pay investors their dividends sooner.

The great credit card swindle

The major banks are being accused of gouging customers with startling high interest rates.

Esther Han 11:03 AM   Credit card holders have been ripped off more than $2 billion dollars in nearly half a decade because of the banks' failure to pass on official interest rate cuts, research shows.

Plastic fantastic in cash-starved Greece

The number of active Visa debit cards in Greece more than doubled in July from previous months.

Maria Petrakis 10:52 AM   ​Greece's banking crisis is having at least one positive outcome, and it's made of plastic.

Pension too often missing in super snarls

The impact of 12 per cent super over the next three or four decades will be profound.

Tom Garcia   How much super you need has suddenly become the $1 million question – but that overlooks the role of the pension.

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IOOF executive's final warning 'went stale'

IOOF is believed to have reported 13 adviser-related breaches to ASIC in the past two years.

Adele Ferguson and Sarah Danckert   An IOOF senior executive received two final warnings for misconduct rather than being dismissed because the first warning had "gone stale".

KG2 seeks years of board records in Bendigo action

Kisimul Holdings is seeking orders from the NSW Supreme Court to conduct a detailed search for evidence in the records of Bendigo Bank and subsidiary Rural Bank

Shaun Drummond   Farmer database company Kisimul Holdings is upping the pressure on Bendigo and Adelaide Bank to allow it to trawl through years of bank board minutes in its bid to prove executives at the bank were complicit in the alleged theft of Kisimul's database by a former executive at Kisimul.

Interest rate gap between investors and owner-occupiers to widen

The gap between what investors and owner-occupiers pay for home loans is tipped to widen.

Clancy Yeates   Property investors should get used to paying increasingly higher interest rates compared with people paying off a loan on a house they live in, mortgage brokers and experts say.

BoQ targets share and profit in rate rise

Bank of Queensland has joined the list of banks hiking investor home loan rates.

Shaun Drummond   Bank of Queensland is the latest bank to hike its investor home loan rates but it is seeking market share as well as profit by mostly raising rates on existing loans.

Asia fund passport could manage $600b by 2030: AT Kearney

James Eyers   More than $600 billion of assets could be managed under a multilateral framework for funds management in Asia within 15 years, says a report by AT Kearney, but competing schemes to liberalise funds management trade in the region must be consolidated before investors and fund managers benefit from the liberalisation.

HSBC's first-half profits rise 10pc

Hong Kong is considering whether to move its headquarters from London to the Asian hub.

HSBC reported a 10 per cent increase in earnings for the first half of the year, boosted by bumper profits in Hong Kong.

Million-dollar super targets labelled scare campaign

AustralianSuper chief executive Ian Silk wants people to be reassured that even a modest superannuation balance will make their retirement more comfortable.

Sally Rose   The popular claim that Australians need more than $1 million in superannuation to fund a comfortable retirement is a myth that risks undermining the strength of the system, warns a new report.

Companies fear further economic slowdowns

Executives share the Reserve Bank of Australia's views about the transitioning economy, which is moving from a mining boom to one with a more diversified economic base.

Ruth Liew   Financial services companies are bracing for at least one more major economic shock in the next decade, and cite delivering sustainable returns to shareholders as one of their biggest challenges by 2025.

Disrupters in battle for access to credit data

Annabel Spring, of the Commonwealth Bank, told the Boao Forum incumbency was a big advantage for big banks.

James Eyers   Control of customer credit data is emerging as a flashpoint between banks and peer-to-peer lenders despite the introduction of "comprehensive credit reporting", which disrupters say is inadequate.

Mobile banking tipped to wipe out 600 branches

Businesses that are more committed to mobile banking technology are likely to get the most benefit in the years ahead, UBS says.

James Eyers   The proliferation of smartphones provides banks with an unprecedented opportunity to slash overheads and will lead to the widespread closure of branches, UBS says.  

Call to take super out of the budget cycle

Brad Cooper will argue that tax breaks on superannuation needed to be limited.

Sally Rose   All sides of the usually fractious superannuation industry have rallied behind the idea.

'The surge is now coming'

The Australian Securities and Investments Commission this week said several lenders had flaws in how they were assessing borrowers for credit.

Clancy Yeates and Shaun Drummond   Non-bank lenders are bracing for a flood of loan applications from housing investors, as a regulatory clampdown forces banks to tighten the screws on landlord borrowers.

ANZ sacks rates trader after conduct breach

ANZ said it sacked one of its traders because of inappropriate conduct that breached its code of conduct and use of systems.

Jonathan Shapiro   ANZ has fired one of the seven traders it stood down as part of an investigation into interest rate manipulation.

Pepper sizzles on ASX debut

Pepper Group co-chiefs Patrick Tuttle and Mike Culhane may have a new recruit.

Shaun Drummond   As two more major banks turned off the home loan tap to investors on Friday, the share price of mortgage lender and loan servicer Pepper Group rocketed 27 per cent above the $2.60 offer price in its $471 million float.

Westpac jacks up rates for housing investors

The nation's largest lender to landlords has spent the past week fixing computer systems and processes that had prevented it immediately following its big bank competitors.

James Eyers   Westpac finally joins rivals in lifting rates for landlords after fixing a computer glitch that has cost it millions in lost interest income.

IAG appoints innovation boss in 'smart move'

Peter Harmer, who takes charge of the newly created IAG Labs, could be a strong group CEO successor candidate, say industry sources.

Ruth Liew   Insurance Australia Group has appointed former commercial insurance boss Peter Harmer as chief executive of its new digital innovation hub, as the $14.4 billion insurer ramps up its technology drive.

NAB foreign investors' big question for Thorburn

National Australia Bank's Andrew Thorburn says he is "watchful" on the housing sector.

James Thomson   When National Australia Bank chief Andrew Thorburn meets investors overseas, he knows exactly what they are going to ask. And housing is at the top of the agenda.

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Lending to landlords accelerates despite crackdown

Housing investor credit growth accelerated to 10.7 per cent in the year to June.

Clancy Yeates   The red-hot housing investor loan market is expanding even faster than thought, after billions in loans were reclassified as investor mortgages.

As low-rate party for investors ends, it may just start for owner occupiers

Housing investors will be paying more, but lenders might sweeten the deal for those people buying property as their home.

Megan Neil   Property investors will be paying more, but lenders may now instead sweeten the deal for those people buying property as their home, analyst says.

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