the adviser logo

Uncertain outlook for building societies: Moody's

by Staff Reporter6 minute read

The outlook for Australian building societies has been labelled "negative" by Moody’s in its Australian Building Societies 2008 Outlook, released this month.

According to the ratings agency, high funding costs and the closure of RMBS markets are likely to constrain loan growth and profitability in the building society sector over the next 12-18 months.

A slowing economy and rising interest rates are also expected to add to the pressure. Problem loan losses are expected to be contained however because of the sector’s relatively conservative lending standards.

Published: 29-04-08

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more