The Reserve Bank's Financial Stability Review says Australia is feeling the full force of "significant strains in the global financial system" and high levels of uncertainty about the size and duration of the economic downturn.
Follow the ABC's Peter Ryan. Analysis of global and Australian business, finance and economics.
Thursday, April 9, 2020
Negative equity incidence to rise as coronavirus shock hits economy and takes real estate prices down with it
The Reserve Bank's Financial Stability Review says Australia is feeling the full force of "significant strains in the global financial system" and high levels of uncertainty about the size and duration of the economic downturn.
Prepare for steep house price falls and negative equity "at margins", warns Bank of Queensland boss George Frazi
Bank of Queensland chief executive George Frazis warns of steep fall on housing prices as coronavirus fallout bites and that, at the margins, there could be some cases of negative equity.
But Mr Frazis tells AM, the federal government is likely to step in with more stimulus if unemployment goes into double digits to protect distressed borrowers.
The banking veteran tells ABC's Peter Ryan, the key to any economic recovery is lifting lockdown measures sooner rather than later.
But Mr Frazis tells AM, the federal government is likely to step in with more stimulus if unemployment goes into double digits to protect distressed borrowers.
The banking veteran tells ABC's Peter Ryan, the key to any economic recovery is lifting lockdown measures sooner rather than later.
Wednesday, April 8, 2020
HSBC Australia confirms potential money laundering breaches as it works with AUSTRAC
Global banking giant HSBC has quietly outed itself to Australia's financial crime agency for potential breaches of anti-money laundering laws by failing to report transfers to foreign banks and institutions.
HSBC joins other banks including Commonwealth Bank and Westpac which have been implicated in breaches of anti-money laundering laws.
ABC's Peter Ryan with this analysis for The World Today.
Read the story here
Tuesday, April 7, 2020
"Helicopter money" to households an option as gov't, RBA confronts coronavirus crisis. I speak with economists Andrew Charlton and Stephen Halmarick
The extreme measure of "helicopter money" is on the table as an option to resuscitate the economy one it begins to crawl out of the coronavirus lockdown.
Economist Andrew Charlton, who advised Kevin Rudd during the global financial crisis, says the risky strategy where money is printed and pumped to households might have to be considered.
Commonwealth Bank chief economist Stephen Halmarick agrees the measure would be extreme and says without massive government and Reserve Bank stimulus, the economy would have tipped into a crisis beyond a deep recession.
Here's my report from this morning's AM program.
Economist Andrew Charlton, who advised Kevin Rudd during the global financial crisis, says the risky strategy where money is printed and pumped to households might have to be considered.
Commonwealth Bank chief economist Stephen Halmarick agrees the measure would be extreme and says without massive government and Reserve Bank stimulus, the economy would have tipped into a crisis beyond a deep recession.
Here's my report from this morning's AM program.
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