[wulfgar]

sydney3000, on 31 January 2012 - 08:03 AM, said:

The flight of financy is in motion.

dwnba.png

Non bank, Aus Deposit institutions are building societies and credit unions. It simply means they aren't doing very well compared to regular banking.

However the M3 has doubled in 7 years!

[sydney3000]

In my mind it shows the effects of the changes in the government guarantee and the overreliance of small financial institutions to fund themselves via a few big accounts instead of many small accounts. They had four years to increase their savings interest rates, improve their banking websites, drop cumbersome membership qualification requirements, merge or form a mutual bank.

This post has been edited by sydney3000: 31 January 2012 - 07:13 PM

[booboo]

Oh yeah.

http://www.rba.gov.a...n-agg-1211.html

Still weak credit. Series low housing credit growth. Can't see where the upside will come in housing at least until credit growth kicks right up again. M3 and broad money kicked up in the last month, though.

MacroBusiness analysis:

http://www.macrobusi...lows-some-more/

[booboo]

January is out.

http://www.rba.gov.a...n-agg-0112.html

Housing is the one consistency of 0.5% MoM growth, hovering around the series lows of 0.4% to 0.5%.

Not so "good" for personal credit and business credit, both falling by -0.2% MoM.

[cobran20]

booboo, on 29 February 2012 - 01:02 AM, said:

January is out.

http://www.rba.gov.a...n-agg-0112.html

Housing is the one consistency of 0.5% MoM growth, hovering around the series lows of 0.4% to 0.5%.

Not so "good" for personal credit and business credit, both falling by -0.2% MoM.

The annual growth% is at close to or record low levels.

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[wulfgar]

A warning though, the M3 is bank credit, or retail banks and those now under bank prudential ruling such as building societies and credit unions.

If we look at total credit then it is a different matter.

http://www.rba.gov.a...d=2902-12:25:39

jan 2009 .........1787.5 Bn

jan 2012...........2058.4 Bn

Total credit "growth" has averaged 4.8% p.a. for 36 months.


The M3 growth has been 7.2% p.a. for the 36 months because the banks caught money fleeing the non-prudential credit sector post GFC. This is why residential property climbed post GFC because money from riskier business investment fled to the banks who do the house loans.

[sydney3000]

Non-bank ADIs should raise deposit rates quickly or they can close up shop within months. Money is leaking out from them. Economies of scale will bite.

This post has been edited by sydney3000: 30 April 2012 - 09:25 AM

[wulfgar]

sydney3000, on 30 April 2012 - 09:25 AM, said:

Non-bank ADIs should raise deposit rates quickly or they can close up shop within months. Money is leaking out from them. Economies of scale will bite.

Originally how the banks acquired their funds was much more regulated, for example the banks couldn't raise capital the way they do now on the international market. Now there is little difference and the banks have the advantage of being both holding companies and speculative borrowers and lenders. The non-bank lenders don't take deposits, so they must get all their money from the money market, and that depends on whether the mainstream banks leave them anything.

25 years ago the retail banks only had 2% of their liabilities OS....now it is 20%.