Commonwealth Bank has responded to Prime Minister Scott Morrison’s call a “fair go” for savers by lifting the interest rate on its 18-month term deposits by 1.95 percentage points, a rise almost eight times larger than the Reserve Bank’s cash rate increase.
“My message to the banks is to give them a fair go. Those deposit holders have stood by banks and holding their savings in banks,” Mr Morrison said in Adelaide on Wednesday morning.CBA has $200 billion in transaction and online accounts. “We hope this special rate will provide some support for savings customers who have had a challenging couple of years,” CBA retail banking boss Angus Sullivan said on Wednesday afternoon.
“We’ve already seen interest rates being raised for term deposits, even by the major banks, anticipating the rise,” he said. “The feedback I’m getting is that where previously the best you could get was 0.5 per cent, now you can get up to 1 per cent.” The certainty of more rate rises to come has put a new focus on bank credit standards, with many new customers buying at the top of the housing cycle. But Mr Elliott said because banks added a 3 per cent buffer when assessing new borrowers – responding to a prudential rule – nearly all homeowners would be able to absorb cash rate rises all the way up to 2.5 per cent.“People have quite a bit of buffer built in, and I don’t know it is going to impact as many as people think,” he said.
“ANZ is well positioned in the face of a rising interest rate environment which should initially improve margins without compromising asset quality. High loss reserves and a very strong capital position underline the group’s balance sheet strength,” said Frank Mirenzi, vice president of Moody’s Investors Service.
“Will they rise? Inevitably they will. But it is probably a delayed impact. Even if interest rates go up pretty sharply soon, it takes a long time to work through to really start to impact bad debts, normally there are 18 months to two years before you start to see that in bank results.”
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: theage - 🏆 8. / 77 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: abcnews - 🏆 5. / 83 Read more »
Source: smh - 🏆 6. / 80 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »