Archive for June 2018

This article is written by Damien Boey of Credit Suisse. Duration of the credit crunch Yesterday, we published an article explaining why we think that credit tightening will be deeper for longer (attached). Our argument is as follows: 1.    1Q APRA data and credit spreads point to a 10-20% drop in loan approvals in the next…

This article originally appeared on Domain on 20/6/2018. Australians will be able to borrow $30,000 less to buy a home as banks tighten their lending practices amid new regulations and a bruising royal commission. The average new loan size is expected to fall about 8 per cent – from $379,000 to $349,000 – as banks…

This article originally appeared on VOX EU on 12/6/2018, written by Peter Bofinger. The digitalisation of money has the potential to change traditional structures of the financial system. This column discusses four areas in which it may have an impact, and argues that while digitalisation will not erode the importance of central banks, banks could…

Banks are quite entitled to increase interest rates at any time. However, increasing due to funding cost increases which may be caused by their own lending policies does not reflect well. In the shadow of the Banking Royal Commission perhaps they should hold off, but I doubt it. This article originally appeared on Credit Suisse,…