Australian Banking & Finance articles from June 2004

Australian Banking & Finance archives from June 2004

Macquarie Bank CEO Allan Moss illustrates the strong growth of the investment bank.(Brief Article)
June 15, 2004... Macquarie Bank CEO Allan Moss illustrates the strong growth of the investment bank. Macquarie, recently named the Best investment Bank for 2004 in Australian Banking & Finance newsmagazine's annual awards, justified the accolade by announcing a...

Insurance Awards 2004 voting process begins.(Brief Article)
June 15, 2004... THE SECOND ANNUAL INSURANCE Awards are underway with an impressive list of final nominations. The voting coupon on Page 5 was compiled by a judging panel comprising Helen Nugent, director of Macquarie Bank, Andrew Price, a partner of Ernst...

Banks step up fight against cybercrime.
June 15, 2004... BANK STAFF WILL BE SECONDED to the Australian High Tech Crime Centre (AHTCC) as part of a new team to continue the fight against cybercrime. This collaboration will see five bank staff seconded to the AHTCC in Canberra to provide...

Banks surprised by EFTPOS ruling.(Current Account)(Brief Article)
June 15, 2004... BANKS ARE DISAPPOINTED BY the decision of the Australian Competition Tribunal to support the appeal by Coles Myer and other retailers to set aside the determination of the Australian Competition & Consumer Commission to reduce EFTPOS...

Finance world.(Current Account)(Insurance Australia Group)(Brief Article)
June 15, 2004... Insurance Australia Group Chairman James Strong and chief executive Michael Hawker. Hawker is reportedly looking at acquisitions overseas to maintain the group's strong growth in the next few years. But IAG would not be straying from its core...

Holden gains new finance brand.(Current Account)(Brief Article)
June 15, 2004... AUSTRALIA'S OLDEST AUTOMOTIVE financier has announced a "brand realignment". The "Holden Financial Services" name introduced to Australia in 1995 will be changed to a more generic "GMAC branding. Announcing the change, GMAC managing...

Mackay society moves to new headquarters.(Current Account)(Brief Article)
June 15, 2004... AFTER ALMOST 15 YEARS AT ITS current headquarters, regional finance group Mackay Permanent Building Society has moved into its new $2.8 million base in the heart of Mackay. Following nine months of refurbishments about 50 staff have moved...

On the record.(Current Account)
June 15, 2004... "No energy, don't stay." CBA CHIEF DAVID MURRAY ON THE RULE OF THUMB HE USED TO DETERMINE WHETHER AN INCUMBENT WAS STILL EFFECTIVE IN THEIR ROLE. "It's a very nice feeling that when I do go at the annual meeting in December that I'm...

Credit unions go live with 'BANCS'.(Current Account)
June 15, 2004... WOLLONGONG BASED Illawarra Credit Union and Sydney based Unicorn Credit Union have successfully combined their operations to form Community Alliance Credit Union--serving more than 50,000 members through 16 branches and 40 ATMs in Sydney,...

Banking strategies.(another view)(Brief Article)
June 15, 2004... BANKING STRATEGIES magazine reports that when financial institutions solicit feedback from their employees, they need to make sure they act on some of those suggestions. A happy employee is more likely to provide good customer service than...

Mortgage lending salaries surge.(News)
June 15, 2004... Hays Banking Personnel's annual salaries survey shows the buoyant feeling in the Australian and New Zealand lending industry has continued in the last year, though the investment banking market remains slow. Salaries for roles in high demand,...

Pepper buys Baycorp.(News)(Acquisitions in mortgage industry)(Brief Article)
June 15, 2004... SPECIALIST RESIDENTIAL MORTGAGE lender Pepper Homeloans has acquired the business of the Lending Solutions division of the ASX/NZX-listed Baycorp Advantage Ltd. The acquisition is complementary to Pepper's specialised residential lending...

Heritage expands.(News)(housing growth of building society)(Brief Article)
June 15, 2004... TARGETING THE POPULATION and housing growth of south east Queensland and growing the relationship with its members through a 25% branch network expansion underpin a strategic direction unveiled by Heritage, Australia's largest building society....

Split loan ruling provides clarity.(News)
June 15, 2004... THE RECENT HIGH COURT RULING that certain sprit loan arrangements may contravene anti-avoidance provisions of the Income Tax Assessment Act has brought some greater clarity around tax-based financing for individuals and businesses, according to...

Insolvency market changing.(News)(Brief Article)
June 15, 2004... THE NATIONAL INSOLVENCY market is headed for significant changes, some of which have already occurred, says commercial law firm Thomson Playford. Thomson Playford partner and insolvency specialist David Rydon said changes to legislation in...

Battle for card supremacy.(News)
June 15, 2004... AS SMARTCARDS GRADUALLY gain more attention worldwide, there is a growing debate about the merits of the two most popular types--MULTOS and JavaCard. While it is true that JavaCard shipments have reached many hundreds of millions, dwarfing...

CommInsure simplifies approach.(News)(Brief Article)
June 15, 2004... LIFE INSURANCE IS NOW WITHIN THE REACH of more people thanks to a new, simplified approach by CommInsure, the insurance arm of the Commonwealth Bank. To help make life insurance easier to understand, CommInsure has significantly reduced...

Executives view CRM as 'critical'.(News)(importance of customer relationship management)(Brief Article)
June 15, 2004... AUSTRALIAN SENIOR EXECUTIVES rate customer relationship management (CRM) as a key engine for growth in the next 12 months. A survey by SAP Asia Pacific and the Economist Intelligence Unit in May assessed the opportunities and challenges...

Deposit market needs change.(News)(Brief Article)
June 15, 2004... AUSTRALIA'S HIGH DEPOSIT account sector is crowded with the Launch of a plethora of new products. Citibank and ING Direct have met with considerable success since launching theirs and HSBC this year launched its revamped Online Savings....

Finance has lowest CEO turnover: the financial services industry is the safest sector for CEOs with the lowest turnover rate, a global study has found.(News)(chief executive officers)
June 15, 2004... Between 1995 and 2003, the financial services industry had the least turnover overall (7.7%) and the fewest forced departures (1.8%). This is certainly true in Australia where, with few exceptions, there has been general stability at the...

Smart business cynical, on banks.(News)(SME banking solutions)
June 15, 2004... SMALL TO MEDIUM SIZED ENTERPRISES are taking a suspicious and cynical view of banks that have previously treated them as top priority but which are now targeting the segment with new product and service propositions, East & Partners has found....

Effective security strategy essential: the rise of e-business and greater awareness of security issues has changed the face of security.(News)
June 15, 2004... No Longer does "corporate security" simply mean posting a security guard in the lobby. Customers, shareholders, staff and increasingly regulators are demanding a greater commitment to security and associated privacy issues. Three...

Victoria launches finance action plan.(News)
June 15, 2004... VICTORIA IS BOLSTERING ITS CLAIM as a leading finance centre with the launch of an action plan for its $14 billion-plus financial services industry. Victorian Minister for Financial Services Tim Holding this month Launched 'Investing in...

Bendigo's $70m complex.(News)(Brief Article)
June 15, 2004... BENDIGO BANK HAS RELEASED concept plans for its $70 million head office complex, to be constructed during the next two years Bendigo Bank's existing Charing Cross head office will remain and the now building will begin at the former current...

Westpac launches discount services.(News)
June 15, 2004... WESTPAC HAS RELEASED A new package of discounted banking products for nonprofit organisations called Community Solutions. The special pricing for community groups includes a fee free cheque account, discounted business credit cards and...

Citigroup, HSBC cool on takeovers.(News)
June 15, 2004... CITIGROUP INC AND HSBC Holdings Plc, two of the world's largest banks, have dampened investor expectations that they may soon acquire large US retail banks. Citigroup chief executive Charles Prince said US retail bank valuations are "out...

Insurers focus on technology.(News)
June 15, 2004... The impact of technology on the insurance sector was the focus of an SAP luncheon in Sydney last month. The keynote speaker was Gartner Group analyst Kimberly Harris from the US. Keynote speaker Kimberly Harris. [ILLUSTRATIONS OMITTED]...

The banking industry will be well represented at the Athens Olympics, particularly in the world or rowing.(behind the screens)(Brief Article)
June 15, 2004... THE BANKING INDUSTRY WILL BE web represented at the Athens Olympics, particularly in the world or rowing. Five bankers will contest in varying events, headed by Westpac employee James Tomkins in the Men's Coxless Pair. Rob Jahrling from Credit...

Former National CEO Frank Cicutto says he's ready to return to corporate life and has plenty to offer.(behind the screens)(Brief Article)
June 15, 2004... FORMER NATIONAL CEO FRANK Cicutto says he's ready to return to corporate life and has plenty to offer. Screens tips he will take on several consultancy positions in the next few months and may even secure a few directorships in the financial...

CBA boss David Murray is not going to retire anytime soon.(behind the screens)(Brief Article)
June 15, 2004... CBA BOSS DAVID MURRAY IS NOT going to retire anytime soon. But when he does (assuming there are no major clashes in between) Michael Katz will be the man to take over. How else to read the recent restructure which sees Katz take charge of CBA's...

Big Aussie John Symond may be feeling the pinch of the general slowdown in the housing market.(behind the screens)(Brief Article)
June 15, 2004... BIG AUSSIE JOHN SYMOND MAY be feeling the pinch of the general slowdown in the housing market. Aussie has given up its corporate box at Telstra Stadium as part of a cost cutting exercise. Symond's chief rival Wizard Home Loans, meantime, is...

Fast-emerging challenger Financial Services has secured top analysts Neil Margolis and Stuart Turner for its Australian equities team.(behind the screens)(Brief Article)
June 15, 2004... FAST-EMERGING CHALLENGER Financial Services has secured top analysts Neil Margolis and Stuart Turner for its Australian equities team. Margolis joins Challenger from Alliance, where he was a senior equities analyst. At Challenger he will be...

Private banks expanding.(News)
June 15, 2004... ONE IN THREE PRIVATE BANKS surveyed on a global basis have a strategy that calls for an acquisition in the next three years. The geographic hot spot for acquisitions is the Asia Pacific region, which accounted for 41% of all private banking...

Low-doc loans to hit $50bn: lending commitments in the Australian low-doc mortgage market quadrupled in the last three years from $7.2 billion in 2000 to $28.7 billion at the end of 2003.
June 30, 2004... The low-doc market now accounts for 14.5% of total mortgage lending commitments and research house Datamonitor forecasts it will continue to grow in the years ahead, although it will do so more slowly with lending commitments, reaching $50.5...

RBA considers more charge card reform.( Reserve Bank of Australia)(Brief Article)
June 30, 2004... RESERVE BANK GOVERNOR IAN Macfarlane is considering imposing reforms on some American Express charge cards as well as both debit transactions and Automatic Teller Machines (ATMs]. The RBA has already won a court battle subjecting credit...

Virgin Money set to expand.(Brief Article)
June 30, 2004... VIRGIN MONEY IS ACTIVELY exploring which financial services product it will target next and is seeking public opinion on the areas most in need of Virgin's brand of "emergency surgery". Managing director Rohan Gamble says some of the...

Adelaide Bank set for record breaking year.(Current Account)(Adelaide Bank Ltd.)(Brief Article)
June 30, 2004... ADELAIDE BANK SAYS IT 15 HEADING for a record breaking 2003-04 on the back of dramatic lending growth, increased market share, strong retail deposits and continued sound credit quality. Managing director and chief executive Barry...

Bank of Queensland benefits from UFJ buy.(Current Account)(Brief Article)
June 30, 2004... BANK OF QUEENSLAND'S ACQUISITION and integration of the former UFJ Finance Australia has led to a dramatic 44 per cent boost in sales and strong customer growth for the former Japanese-owned equipment leasing business. BOQ Business Banking...

Banking world.(Current Account)(Allied Irish Banks PLC)(Bank of Ireland)(Brief Article)
June 30, 2004... Pedestrians pass a Bank of Ireland branch in Dublin, Ireland. Allied Irish Banks Plc and Bank of Ireland Plc, the country's two biggest lenders, may draw bids from companies such as HBOS Plc and Barclays Plc after management changes and a probe...

Internet banking growth to continue.(Current Account)(Brief Article)
June 30, 2004... THE LATEST REPORT FROM GLOBAL independent research and advisory firm Financial Insights predicts sustained growth in internet banking across nine countries in Asia Pacific. These are Australia, China, Hong Kong, India, Korea, Malaysia,...

On the record.(Current Account)(McFarlane, John)(Kench, Stephen)(Brief Article)
June 30, 2004... "I'm not arguing that banking is perfect, it's not, but I can't remember the last rural branch closure in a bank for years. People are increasing branches, for example, more than reducing them," ANZ BANK CHIEF EXECUTIVE JOHN MCFARLANE...

MasterCard strengthens attack on phishing scams.(Current Account)(NameProtect)(Brief Article)
June 30, 2004... MASTERCARD INTERNATIONAL and NameProtect, the leading digital fraud detection company, are working together to aggressively combat illegal online activities such as "phishing" identity theft schemes and the brokering of illegally obtained...

Another view.(Current Account)(straight through processing)(Brief Article)
June 30, 2004... ONCE A DARLING OF THE industry that brought people to conferences in droves, the concept of STP became tired when T+1 was shelved in 2002. But now, some industry observers say, as financial institutions once again fill their coffers with...

Westpac, CBA win new customers.(News)(Westpac Banking Corp.)(Commonwealth Bank of Australia)
June 30, 2004... WESTPAC AND THE COMMONWEALTH Bank have emerged as big winners from National Australia Bank's woes, according to Nielsen's Financial Institution Customer Monitor for the March 2004, quarter. The latest report found that NAB all but dropped...

IMB Society secures first investment grade rating.(News)(IMB Ltd.)
June 30, 2004... IN AN AUSTRALIAN FIRST, Standard & Poor's has assigned a public rating of BBB-long term, A-3 short term to IMB, making it the only building society or credit union in Australia to have ever been given a public investment grade rating. ...

Developments in branches.(News)
June 30, 2004... I READ AN ARTICLE RECENTLY saying that the trouble with banks is they are run by bankers. This somewhat ungenerous remark was provided in a European context, noting that certain of Europe's retail financial institutions were appointing...

The rich get richer as equity markets rally.(News)(Surveys of Rich people)
June 30, 2004... THE RICH IN AUSTRALIA ARE getting richer. There ware an estimated 117,000 high net worth individuals in Australia in 2003, up 11% or a net 12,000 people on the previous year, according to the 2004 World Wealth Report by Merrill Lynch and...

Capital market buoyant.(News)(Brief Article)
June 30, 2004... A TOTAL OF $37 BILLION WAS raised on Australia's capital market from July 2003 to June this year, according to KPMG's 2003-04 Capital Markets Survey. Antony Cohen, director in KPMG's Corporate Finance business, said that this was a result...

Insurers seek comment on draft Code of Practice.(News)(Insurance industry)
June 30, 2004... THE AUSTRALIAN GENERAL insurance industry is calling on consumers and business to comment on its new Public Consultation Draft Code of Practice, which lifts standards beyond the requirements of the Federal Government's new regulatory regime and...

HSBC creates new export role.(News)(Tom Mckay)(Brief Article)
June 30, 2004... HSBC HAS APPOINTED TOM Mckay as head of Project and Export Finance. A new role, reporting to Graham McNamara, head of Debt Finance Group, McKay will manage the further expansion of HSBC's project and export finance business. McNamara...

MacKay Permanent Building Society.(News)(Deborah Turvey)(Brief Article)
June 30, 2004... MACKAY PERMANENT BUILDING Society has appointed Deborah Turvey to the position of Marketing Manager. She will be primarily responsible for market research and strategy development for the Society encompassing the development and...

Bank of Queensland.(News)(Bruce Auty)(Brief Article)
June 30, 2004... FORMER WESTPAC EXECUTIVE and PriceWaterhouse Coopers consultant Bruce Auty has been employed by Bank of Queensland to position the regional bank as an industry loader in risk management as it expends interstate.

CRM benchmarks lacking.(News)(Customer relationship management)
June 30, 2004... MUCH HAS BEEN WRITTEN ON the "hype" surrounding customer relationship management initiatives, and the failure of major CRM implementations to significantly transform the financial services industry. However less attention has been paid to...

Clerp 8 'gone missing'.(News)(Corporate Law Economic Reform Program)
June 30, 2004... TWO YEARS AGO SENATOR IAN Campbell announced Clerp 8, the step in the Government's Corporations Law Reform program intended to bring Australia's insolvency laws to the cutting edge of international practice and deliver more certainty to the...

OCBC Bank's targeted marketing.(News)
June 30, 2004... OCBC BANK HAS BECOME THE FIRST bank in Asia to provide targeted marketing and a personalised experience at its automated teller machines (ATMs) by using NCR Corp's APTRA Relate software to integrate its self-service network with its customer...

AMP pays down debt.(News)(Brief Article)
June 30, 2004... AMP CHIEF EXECUTIVE ANDREW Mohl is looking far more confident these days. And justifably so. Last week AMP announced it had paid off $747 million of offshore debt and reaffirmed plans to return surplus cash to shareholders through...

The election campaign is on in earnest and bank bashing remains an easy option for politicians.(behind the screens)(Mark Latham)(Brief Article)
June 30, 2004... The election campaign is on in earnest and bank bashing remains an easy option for politicians. Mark Latham's banking policy is a pure vote-grabber even though most of the measures contained have already been addressed by an industry which is...

While on this subject, we hear Australian Bankers' Association chairman John McFarlane rang Latham and blasted him for releasing Labor "banking policy" without first consulting the industry.(behind the screens)(Brief Article)
June 30, 2004... While on this subject, we hear Australian Bankers' Association chairman John McFarlane rang Latham and blasted him for releasing Labor "banking policy" without first consulting the industry. And CBA boss David Murray, the industry's most vocal...

Look at IAG shares go.(behind the screens)(Brief Article)
June 30, 2004... Look at IAG shares go. They sailed through $5 last week, a huge rise on the lows of $2.20 plumbed when CEO Michael Hawker announced the acquisition of CGU and NZI two years ago. The rise and rise of Australia's biggest general insurer must...

The anointment of Michael Chaney as chairman of National Australia Group is a huge positive.(behind the screens)(Brief Article)
June 30, 2004... The anointment of Michael Chaney as chairman of National Australia Group is a huge positive. But the timing is a definitive. Chaney won't take up the position until September next year, leaving the incumbent Graeme Kraehe to oversee the repair...

Don't listen to the spin doctors at Challenger Financial Services who say Chris Cuffe decided himself to step down as CEO to concentrate on funds management.(behind the screens)(Brief Article)
June 30, 2004... Don't listen to the spin doctors at Challenger Financial Services who say Chris Cuffe decided himself to step down as CEO to concentrate on funds management. The big man, Kerry Packer, made the call, make no mistake about it. The major...

One of the true survivors (and good blokes) in the finance sector, Jim Larkey, is retiring as executive director of the Australian Association of Permanent Building Societies.(behind the screens)(Brief Article)
June 30, 2004... One of the true survivors (and good blokes) in the finance sector, Jim Larkey, is retiring as executive director of the Australian Association of Permanent Building Societies. He has just turned 65 and, after 32 years in this position, "I...

Mortgage Choice boss Paul Lahiff has been busy wooing institutional investors ahead of a planned float of the group in August.(behind the screens)(Brief Article)
June 30, 2004... Mortgage Choice boss Paul Lahiff has been busy wooing institutional investors ahead of a planned float of the group in August. Screens understands the earnings projections which will be contained in the prospectus will be attractive despite the...

Performing for costs.(News)
June 30, 2004... IN OUR PREVIOUS ARTICLE WE highlighted that one of the key demands of the current wave of Performance Measurement is Strategic Cost Management. In Financial Services, Activity Based Costing is the industry approach to cost management. Old...

House prices grow slightly.(News)(Brief Article)
June 30, 2004... AUSTRALIA'S MEDIAN HOUSE price rose marginally in May, white the national median unit price remained steady, according to the latest figures from the Commonwealth Bank Property Value Guide. Geoff Austin, the bank's Executive General...