Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Regional banks struggle, but will recover: RBA

Staff Reporter 3 minute read

While Australia’s big banks remain resilient, the country’s smaller regional banks are currently under “downward pressure”, according to the Reserve Bank of Australia (RBA).

Yesterday, the RBA released its biannual Financial Stability Review, which found that smaller, lower-rated banks were under increasing pressure because they had to pay higher rates to attract deposits and borrow on wholesale markets.

However, there are positive signs in the market for mortgage backed securities which means the smaller banks might regain grounds.

Earlier this month, ME Bank launched an issue of $500 million of prime residential mortgage-backed securities (RMBS).

Advertisement
Advertisement

The offer, called SMHL Securitisation Fund 2009-2, was the second by ME Bank in two weeks.

In the latest offer, ME Bank called on the Commonwealth Bank of Australia, Macquarie Bank and Deutsche Bank to help it sell the notes.

According to the RBA, this latest issue meant investors were willing to turn to banks without a government guarantee, which will hopefully spell good news for small banks moving forward.

Regional banks struggle, but will recover: RBA
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...