The benefit to banks from interest rate rises is waning, as lenders compete for funds and consumers shift billions of dollars from low-interest accounts into higher-interest savings accounts and term deposits.
a “pause” in its rate rises
Analysts say the benefit to banks from interest rate rises is diminishing due to stiff competition for loans and deposits.This is pushing up banks’ funding costs, at the same time lenders are also fighting to pinch rivals’ mortgage customers, amid a refinancing boom. “You have competition on the asset side of the balance sheet and the liability side of the balance sheet. That’s a bad environment for bank revenue,” he said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Data obsessed central banks will quit the cycle earlyMFS fund manager Pilar Gomez-Bravo believes central banks may not be able to increase interest rates as much as originally thought because of recession.
Read more »
Two months after sacking 40pc staff, fintech banks $70m raiseTill Payments laid off a big chunk of its staff and cleaned out its board, but it has banked big funding and plans to refocus on profitability.
Read more »
Banks on notice from ACCC as interest rates climbGina Cass-Gottlieb warned the watchdog would look closely at how banks set interest rates as the Reserve Bank continues to fight inflation with ongoing rate rises.
Read more »
Gary Banks’ calls on young Australians to embrace ‘critical thinking’Former Deputy Prime Minister John Anderson says Gary Banks is a fine servant of the land who has shown how to improve prosperity, raise living standards, create a better country, and he can sleep well knowing he's done his duty. 'He has sought the waters not only the foolhardy would not listen, and that'd be so very gently but very respectfully to the under the 40s in this country,” he told Sky News host Peta Credlin. 'For many of you, your education systems let you down, you're lacking, you've not been given the critical thinking, you feel your way into what seems good and right. In fact, there's no such thing as a free lunch.”
Read more »
Morgan Stanley says big banks to underperform the marketAnalyst Richard Wiles says the tailwind of rising interest rates is no longer blowing behind the big four banks, with more competition now dragging on margins.
Read more »
Banks look to adopt ChatGPT to help customers: MicrosoftBill Borden, corporate vice president for financial services at Microsoft, says OpenAI will be used by banks for customer engagement and employee enablement.
Read more »