Nucleus Wealth Webinar
Last week I was a guest on Nucleus Wealth’s webinar. The title is “Why are Australian Banks so profitable?” … but we talk about much more.
Regulation
APRA shuts the CLF, tells banks to buy assets
[This is an edited version of a post that was first published on livewire, on 10 September 2021] In a move that’s a bit more aggressive than I had expected, APRA just announced that they will close the CLF (Committed Liquidity Facility). The CLF will be reduced in four equal steps (1 Jan’22: $104 billion; 30 Apr’22: $70 … Read more
APRA should wind down the CLF in 2yrs
[This is an edited version of a post I first published on livewire, on 7 September. With APRA having announced, on 10 September, that they are closing the CLF, events have somewhat overtaken this post]. Recent data suggests that APRA and the RBA can shrink the Committed Liquidity Facility (CLF) faster than I had previously figured. … Read more
Get the banks to buy the bonds (or how to better align fiscal, monetary and bank regulatory policies)
[This is an edited, updated, and expanded version of a post that first appeared on livewire] The COVID-shock of 2020 put a spotlight on a design flaw in Australian regulations. At a time when governments are borrowing lots of money, and the RBA is buying government bonds to boost the economy, regulations discourage banks from … Read more