Walk The World Just before Christmas APRA advised the imposition of a 1% Counter Cyclical Capital Buffer on Australian Banks. Interesting timing, seeing as the Bank For International Settlements had set 2023 as the required date. Up to this point APRA has argued a 1% buffer was not needed in Australia – so what changed?
So, we wonder, are they being forced to comply. and what does this mean for our “strong” banks as interest rates rise and lending slows?
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Thanks Martin we are getting plenty of info this year already.
Punching the content out this year 👌🏼👌🏼👍🏼
There self regulating now?!
We need a thorough independent review of APRA.
Thanks Martin. What are your thoughts on the RBA review? Has anyone involved pointed out the risks with their policy years ago, or are they all people who are pointing it out now the horse has bolted?
I'm wondering if this review will end up being another exercise in futility.
Apra is a total joke
Watch as we make all accountability we have towards effective regulation disappear. APRA-cadabra…
when would Tarric be back? 🙂
AHPRA is dirty too.
They seem a little confused between counter-cyclical and pro-cyclical!
Roller coaster inflation and high interest rates is the future.if the regulators did there job all of the above wouldn’t exist.
Has anyone i formed APRA that the public strongly object to their money being used for bail-ins and bail-outs and that no business is deemed too big to fail?
APRA, along with ASIC, only work for themselve$ and their corporate mate$.
Martin, you're not illiterate.
You know that calendar dates take ordinal, not .cardinal numbers.
January (the) first
Not January one.
All government bodies like unions are dirty …. If you have humans u have dirt …. Rid the humans
Hi Martin, I saw this about APRA earlier today and wondered if a video was coming. I still don’t completely understand what this means though so I am hoping you may re go over it for those (me) who don’t completely understand economics. Does it impact the serviceability buffer for a mortgage for new loans in 2023 or is it a KPI for banks internally? I’ll rewatch again to see if I can pick more up.
Larger buffers requires attracting more deposits. The only way to do that is to raise depositor's interest rates.
Probably because NZ will do 2%
John Adams MIA again Mr North?
"The day of wrath, that wellknown day"
Wait, we are taking directions from Baal (?), Switzerland? Isn’t that an alternate name of literally the devil?
Great work Martin…more evidence government agencies are asleep at the wheel…now that the realisation that the party is over…ppl more asleep…bring on the bust!
Funny how the Banksters make all the same "mistakes", in almost the same sequence, with basically the same excuses… and then pretend they are surprised… their actions created exactly the same results as last time …around twice a century.
It's pretty clear APRA responded to bank and political preferences rather than doing its job. Yet another institution captured by vested interests.
I could not help but notice in the comments , a remarkably sensible worded request from Cindy , seeking the views/opinions etc.from Martin North at DFA regarding apra/banks/mortgage rates serviceability etc. for 2023 . The DFA casual remark that maybe not too many people would notice the officially required release of information being so very close to Christmas really left me with a feeling that I would feel really awful if I didn’t comment . Comments from economists everywhere , except for the so called western world , really highlighted how cleverly we are shielded from understanding the full extent of our true economic situation . With great admiration and respect to DFA and People like Cindy , From Robert Of Australia 🇦🇺.
The next thing on APRA's agenda is reducing the buffer rate for mortgage serviceability.
Currently set at 3%, expect it to drop soon to 2.5% or perhaps even 2%.
Okay, so who pays the 1% ? as banks are currently lending at 3% over the RBA rate. I can't ever see the "generous share holder" banks taking a hit and reducing the buffer.
What do people expect when the Westminsterclowns and their corporate fascist political donors only implement puppy farm economic models.
Every available political option is another version of the same flawed reasoning.
Blue, red, green and the independent included.