Banking & Finance


CBA customers face hit from deposit tax

James Eyers and Clancy Yeates 9:54 PM   Commonwealth Bank of Australia says the federal government's $500 million-a-year tax on bank deposits might be passed on to customers.

Comments 55

Bank safety net carries a cost


James Eyers and Clancy Yeates 7:16 PM   Two of Australia's largest banks are warning that interest rates could rise if they are made to carry more capital.

MYOB owner dismisses Xero criticism

MYOB chief Tim Reed and Bain Capital Asia Craig Boyce. 31 March 2015. AFR pic by Peter Braig.

Shaun Drummond and Sarah Thompson 6:45 PM   The private equity owner of accounting software company MYOB says the "outrageous" accusations made by rival Xero about its customer numbers and growth prospects will not deter investors in the lead-up to what is likely to be the biggest float on the ASX this year.

Xero demands more details from MYOB

XERO founder Rod Drury has attacked MYOB's prospectus, claiming it lacks the right details.

Shaun Drummond 5:35 PM   Xero founder Rod Drury has escalated his attacks on MYOB, claiming its prospectus does not give enough detail to investors.

CBA to sell Albert device to global banks

CBA customers will be able to use Albert, a wireless, 7-inch Android tablet with touchscreen that has been developed in association with German banking tech giant Wincor Nixdorf.

James Eyers 11:53 AM   Commonwealth Bank of Australia expects tens of thousands of its new Albert point-of-sale devices to appear in Australian restaurants, cafes and retail stores, changing the way we pay and gathering richer data.

Bankers warn of lending risk

Banks are resisting mandatory participation in the comprehensive credit reporting regime.

James Eyers 5:57 AM   Australia's banks have warned that the cost of small business loans will rise and business credit may be curtailed if the government extends unfair contract laws to credit contracts as proposed by the financial system inquiry.

Westpac's Yetton signals potential of P2P lending, crowdfunding

Senior Westpac banker Jason Yetton.

Clancy Yeates   Banks face growing competition from nascent online industries including peer-to-peer lending, which allow savers to directly fund borrowers via a digital platform, and crowdfunding, which raises an small amount from a large number of funders.

Bank strength needs broad measurement; NAB

A leverage ratio should remain a backstop measure, NAB said.

James Eyers 12:15 AM   The FSI recommends a measure of strength that is 'too narrowly defined', says NAB.

Banks warn on small business credit

The Australian Bankers' Association has responded to each of the 44 recommendations of the financial system inquiry.

James Eyers   Australia's banks have warned that the cost of small business loans will rise and business credit may be curtailed if the government extends unfair contract laws to credit contracts as proposed by the financial system inquiry.

Small banks want capital levels raised now

The market needs clarity and certainty around the capital that is held by banks, Suncorp chief executive John Nesbitt says.

Shaun Drummond   Regional banks say there is no reason for the banking regulator to delay raising the capital levels of the big banks to ensure consistency with global bank capital rules, which could take years to complete.

Comments 2

Financial planners register 'a major step forward'

The national planners register "will improve transparency and accountability in the financial advice sector", says Josh Frydenberg.

Sally Rose   Assistant Treasurer Josh Frydenberg has hailed the launch of a financial planners register as a “major step forward” for the industry.

Macquarie set to wield the axe in Asia

Macquaire Group plans to shed investment banking jobs in Asia.

Cathy Chan   Up to 90 investment banking jobs in Asia will be eliminated as Macquarie Group revenue slides.

Trowbridge proposal to 'drive out' advisers

John Trowbridge recommended a $1200 cap for initial payments.

Ruth Liew   Financial advisers argue that John Trowbridge's proposal to cap up-front commissions would drive some out of business.

Macquarie rumoured to slash Asia banking jobs as deals fade

Reported job cuts in Asia reflect Macquarie CEO Nicholas Moore's strategy of shifting the company toward stable businesses such as leasing, fund management and lending.

Cathy Chan   Macquarie Group plans to cut about half its investment-banking jobs in Asia and announce the departure of the head of its advisory and capital markets unit, sources tell Bloomberg.

Apple, Google must sign fraud code, says PayPal

(FILES) The Apple logo is seen in this September 11, 2012 file photo at the Yerba Buena Center for Arts in San Francisco. Anticipation built October 23, 2012 as Apple prepared to unwrap its "iPad Mini," launching a foray into the crowded market of smaller tablet computers dominated by Amazon, Google, and Samsung. As is its style, Apple remained mute regarding its exact plans but took the unusual step of saying it would livestream the event, from 1700 GMT in San Jose in the heart of Silicon Valley -- albeit only on its own products. Invitations to the first major product launch since the death of Apple's visionary co-founder Steve Jobs last year and his replacement by Tim Cook bore only time and location details along with the message: "We've got a little more to show you." However, rampant rumor fueled by industry insiders foretold of the arrival of an "iPad Mini" priced from $249 to $399 with a screen measuring 7.85 inches (20 centimeters) diagonally across. AFP PHOTO / Kimihiro HOSHINO / FILES

Shaun Drummond   PayPal says consumer safety is at risk with Apple and Google pushing into the e-payments space, but not signing up to fraud codes.

Ex-Wallaby Phil Kearns named InterRISK chief

Phil Kearns

Ruth Liew   Former Wallabies captain Phil Kearns will become chief executive of insurance broker InterRISK Australia next month.

Banks slam global banking watchdog

Australia’s banks have launched a stinging attack on proposals by the international banking regulator on capital levels.

James Eyers   Australia’s banks have hit out at the international banking regulator's plan to overhaul risk modelling, warning that the move would only add to the complexity of the Basel framework.

Dynamic currency conversion - robbery by choice

There is every likelihood the DCC scam will end up in the hands of regulators and class action lawyers.

Michael West   As far as bank robberies go, this one is bigger, and just as fiendish, as any.

Comments 35

Small banks say they will suffer from proposed deposits levy

The  latest charges come after the Commonwealth Bank referred suspicious findings from an internal investigation to police.

Shaun Drummond and Phillip Coorey   Small banks say they will be hit harder by the bank deposit levy the government is planning to introduce in the budget.

Westpac promises faster credit for small business

Westpac says it will cut the time it takes to approve small business loans.

Clancy Yeates   Westpac is pledging to cut the time and paperwork involved in assessing credit applications for its small business customers through a new online system, as it eyes a bigger slice of the market.

Banks say they are 'paying their way'

Bank big four

Clancy Yeates   Banks say they pay more than one-third of the tax paid by ASX 200 companies.

Super balances above $2.5m in firing line

Calls to reform tax concessions on superannuation come as the government struggles to manage the budget and support an ageing population.

Sally Rose   Pressure is mounting on the government to change the rules that allow wealthy people with millions of dollars in superannuation savings to access their money in tax-free lump sums.

Second banking executive charged over corruption allegations

Former Commonwealth Bank executive Jon Waldron.

Ruth Liew, Paul Smith and Luke Malpass   A second man arrested in connection with a multi-million dollar bribery in Commonwealth Bank of Australia's technology division, Jon Waldron, was a regular speaker at conferences around the world.

Banks fear budget may slug depositors

Bank customers will likely get hit with any costs imposed for the financial claims scheme.

James Eyers   Banks say savers may be hit with a $350 million-a-year bank bail out tax from January 1, despite a government-backed inquiry calling for it to be scrapped.

Planners could lose $270m a year

One of the Trowbridge Report's recommendations is that planners get  an initial advice payment of no more than $1200 per customer.

Ruth Liew   Financial planners should get no more than $1200 upfront for life insurance advice to help rebuild consumer trust, the Trowbridge Report says.

Azure strikes deal with ChinaAMC

NEWS - Frank Zhang, Deputy Chief Executive Officer of China Asset Management Co Ltd (ChinaAMC) & the Chief Executive Officer of China Asset Management (Hong Kong) Limited in the offices of Azure Funds Management in Perth. Photo Ross Swanborough.

Julie-anne Sprague   Perth-based Azure Capital has struck a deal with one of China's biggest asset managers to create the first investment fund in Australia to tap growth in the world's second biggest economy using on-the-ground analysts.

BoQ profit misses the mark with higher costs

Bank of Queensland has forecast annual profit of $362 million, set at the average of consensus estimates.

Shaun Drummond   Analysts have questioned Bank of Queensland's capacity to maintain earnings growth and dividend yield amid fierce lending competition, low interest rates and an uncertain economic outlook.

Greg Norman starts $96m Great White Shark Investment Fund

Keeping the ball rolling: Former champion golfer Greg Norman has started his own investment fund.

Michael Buteau   Greg Norman is branching out from golf course design and wine to start his own asset-based debt-lending fund with $US75 million ($96 million) in capital.

'Now is the time to act' on banking system safety

Customer owned banks want the financial system inquiry implemented quickly.

James Eyers   The nation's credit unions, building societies and mutual banks have called on the government to increase the resilience of the financial system and boost banking competition.