Australian Banking & Finance articles from November 2008

Australian Banking & Finance archives from November 2008

RBA receives tick of approval: the Reserve Bank's move to ease restrictions on what it is willing to accept as collateral from banks including RMBS repo--has been warmly embraced by the market.(NEWS)
November 15, 2008... [ILLUSTRATION OMITTED] In observing that "conditions in global money markets have deteriorated significantly in recent weeks", the Reserve Bank of Australia (RBA) swiftly acted, announcing changes to its domestic market operating...

Another one bites the dust. Who's next? Commonwealth Bank's move to swallow BankWest continues the extraordinary developments for the Australian banking sector, with more consolidation tipped to follow as the upheaval of the global financial services industry keeps on.(NEWS)
November 15, 2008... When announcing the acquisition of Western Australian powerhouse BankWest for $ 2.1 billion, Commonwealth Bank boss Ralph Norris could hardly contain his glee. "The Commonwealth Bank regularly reviews acquisition opportunities but rarely...

Accountants slam lack of governance within banks.(NEWS)
November 15, 2008... The principal source of the global credit crunch is a failure in corporate governance at banks, which encouraged excessive short-term thinking and a blindness to risk, according to a report released by the Association of Chartered Certified...

Obtaining the benefits of a successful relationship: in one of his first interviews since starting at Bank of Queensland last month, Jim Stabback, group executive, IT and operations, details to Australian Banking & Finance Magazine his thoughts on the latest trends and developments in the industry, and what is needed for a successful relationship between a bank and its software vendors.(NEWS)
November 15, 2008... With more than 20 years experience managing large scale operations, technology and service delivery management in the financial services industry, Jim Stabback says the announcement of several major IT infrastructure projects this year will...

NAB unveils UBank.(NEWS)
November 15, 2008... National Australia Bank has established UBank, a new direct channel offering, focused on savings products. The bank said UBank will launch with term deposits and over time, add a range of additional savings, transaction and investment...

Governments act on liquidity and confidence: as the US Treasury sets about implementing the US$700 billion Troubled Assets Relief Program, the well-capitalised and well-regulated Australian financial system is proving relatively resilient to extraordinary market conditions.(NEWS--RESTORING MARKET CONFIDENCE)
November 15, 2008... The Australian federal government and regulators have taken action on several fronts to ensure stability in Australia's Financial markets. Most recently the Reserve Bank of Australia (RBA) recognised that global money markets have...

Will investors join the party?(NEWS--RESTORING MARKET CONFIDENCE)
November 15, 2008... The federal government initiative for the $4 billion purchase of triple A-rated residential mortgage--backed securities (RMBS) is a short-term competition measure, according to Treasurer Wayne Swan, but investors are going to have a strong...

Mortgage Choice backs regulation.(NEWS--RESTORING MARKET CONFIDENCE)
November 15, 2008... [ILLUSTRATION OMITTED] Mortgage Choice has congratulated the Council of Australian Governments (COAG) on its agreement to an implementation plan for the assignment of regulation of the mortgage broking industry to the federal government....

IAG says sorry--again.(NEWS)(Insurance Australia Group Ltd. apologises to investors for a poor and disappointing year)
November 15, 2008... Insurance Australia Group management has again apologised to investors for a poor and disappointing 2008, saying the financial performance of the company is set to improve. In its inaugural annual review, released last month, chairman James...

Tower acquires InsuranceLine.(NEWS)(Brief article)
November 15, 2008... Tower Australia has said it will "continue to look- at opportunities for growth" after acquiring insurance product distributor InsuranceLine. Tower announced earlier this month it will pay $136 million--$61 million in cash and the balance...

AIG reassures customers.(NEWS)
November 15, 2008... The Australian subsidiary of insurance giant American International Group has reassured customers of its future following the restructure of the company's global operations. AIG said it intended to refocus the company on its core property...

Not-for-profit loans scheme expanded.(NEWS)
November 15, 2008... National Australia Bank has announced a $100 million boost to its micro-businesses. NAB Microenterprise Loans are unsecured business loans of between $500 and $20,000 for people on low incomes who have few or no avenues to access...

ANZ deploys NCR ATMs.(NEWS)(Australia and New Zealand Banking Group Ltd.)(Brief article)
November 15, 2008... NCR has completed the installation of more than 20 new NCR SelfServ automated teller machines for ANZ as part of the bank's new partnership with Sydney Airport. The ANZ deployment at all three terminals is Australia's first rollout of the...

Firstfolio acquires eChoice.(NEWS)
November 15, 2008... Mortgage and financial services group Firstfolio Ltd has announced the acquisition of Australia's largest online focused mortgage broking platform, eChoice. The acquisition, which includes eChoice's $2.6 billion mortgage book and...

2009 current events schedule.(Calendar)
November 15, 2008... 2009 CURRENT EVENTS SCHEDULE Australian Financial Publications, publisher of Australian Banking & Finance Magazine, has some exciting industry events planned for 2009. Covering retail banking and finance, wholesale financial markets,...

BOQ cautious going forward.(NEWS)
November 15, 2008... [ILLUSTRATION OMITTED] Bank of Queensland says it has "cautious confidence" going forward for what it describes as "a challenging time ahead." The forecast came after the company reported net profit for 2008 of $126.8 million, on...

ANZ takes its place in crowded Vietnam.(NEWS)(Company overview)
November 15, 2008... Australia and New Zealand Banking Group has won a licence to open a fully owned bank in Vietnam. "Vietnam is one of the countries we have identified as a high priority for growth as part of ANZ's super regional strategy," ANZ chief...

Major banks urged to scrap fees.(NEWS)
November 15, 2008... Commonwealth Bank and ANZ have come under fire from consumer groups who say the banks should stop slugging low-income earners with unfair penalty fees on concession accounts. "People on low and fixed incomes are hit hard by unfair bank...

It seems the public's calls for banks to explain their actions when deciding not to pass on in full official interest rate cuts has not gone unheeded.(BEHIND THE SCREENS)
November 15, 2008... It seems the public's calls for banks to explain their actions when deciding not to pass on in full official interest rate cuts has not gone unheeded. When announcing earlier this month it would reduce its standard variable rate by 80 basis...

And speaking of the RBA, a bit of light-hearted humour flowed from their offices when Screens called upon their media department for an official photograph of boss Glenn Stevens.(BEHIND THE SCREENS)
November 15, 2008... And speaking of the RBA, a bit of light-hearted humour flowed from their offices when Screens called upon their media department for an official photograph of boss Glenn Stevens. Their response? "Do you want one of him smiling or frowning?"

The focus that banks have given SME's is beginning to show results, with a steady increase in SME sentiment towards their banks in East & Partners' latest Business Banking Sentiment Index.(BEHIND THE SCREENS)
November 15, 2008... The focus that banks have given SME's is beginning to show results, with a steady increase in SME sentiment towards their banks in East & Partners' latest Business Banking Sentiment Index. "SMEs are still not big advocates of their banks," East...

"Quote unquote".(BEHIND THE SCREENS)
November 15, 2008... The following are some of the best quotes we have heard over the past fortnight "The Commonwealth Bank regularly reviews acquisition opportunities but rarely have we seen a quality asset such as BankWest become available on such attractive...

Guarantees turn into political beasts: the federal government's banking sector guarantees have been designed to put the Australian banking system on equal footing with others around the world, but they have been a difficult beast to tame.(NEWS)
November 30, 2008... More details of the federal government's guarantee on deposits and wholesale funding have emerged after weeks of frenzied debate and political scurrying. The government took the step of guaranteeing deposits for a period of three years in...

QBE triumphs at Australian Banking & Finance Magazine Telstra Insurance Awards.
November 30, 2008... [ILLUSTRATION OMITTED] QBE and its chief executive Frank O'Halloran took top honours at this year's Australian Banking & Finance Magazine Telstra Insurance Awards. The Australian insurance company was named Best General Insurance...

GE pulls plug on third party mortgages.(NEWS)
November 30, 2008... Australia's largest non-bank lender, GE Money, has blamed "extreme volatility and greatly increasing cost of funds" for the decision to stop offering home loans through third party mortgages, motor finance and small business finance in...

Sweeping government measures to have lasting effect.(NEWS)
November 30, 2008... Leading international rating agency Standard & Poor's (S&P) believes that governments will have a larger role in the global banking industry for years to come. A recent article by S&P is supportive of swift and comprehensive government...

QBE the cream of the crop: judges sing the praises of QBE as the insurance industry gathers to celebrate its stars at the Australian Banking & Finance Magazine Telstra Insurance Awards.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... QBE has demonstrated why it has been regarded as the best performing insurer in recent times after receiving two major honours at Australian Banking & Finance Magazine Telstra Insurance Awards. The Australian insurance company was named...

Our panel of leading insurance industry experts.(2008 TELSTRA INSURANCE AWARDS)(Discussion)
November 30, 2008... [ILLUSTRATION OMITTED] This year Australian Banking & Finance Magazine established a panel of leading insurance industry experts to adjudicate the eventual winners of the Insurance Awards. Public voting on a shortlist of nominees...

TOWER accelerates to a win.(2008 TELSTRA INSURANCE AWARDS)(Brief article)
November 30, 2008... [ILLUSTRATION OMITTED] Accelerated Protection is an award winning life insurance product backed by a fast and hassle-free application process which results in more than 85 per cent of underwritten decisions within three days for customers...

Award 'stamp of approval' for Real Insurance.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... [ILLUSTRATION OMITTED] Real Insurance chief executive, Roger Grobler, said the Telstra Insurance Award represented "the best stamp of approval for us". "The thing that is exciting about the product for us is it's all innovation,"...

Budget Direct drives off with award.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... Budget Direct is arguably the fastest growing car insurance provider in Australia. Since arriving in Australia in 1999, Budget Direct now employs more than 500 people, issuing over 6000 car insurance policies to Australian drivers every...

BT adopts a winning method.(2008 TELSTRA INSURANCE AWARDS)(Brief article)
November 30, 2008... [ILLUSTRATION OMITTED] BT's Super for Life product was promoted and distributed through Westpac's branch network to increase its accessibility. And the move paid off. BT's Super for Life averaged 10,000 new accounts per month from June...

Customers the focus for AAMI.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... [ILLUSTRATION OMITTED] During the past three years AAMI has consistently achieved total satisfaction levels greater than 90 per cent. The insurer provides access to decision-makers available 24 hours, seven days a week, and provides a...

Three in a row for Swiss Re.(2008 TELSTRA INSURANCE AWARDS)(Swiss Reinsurance Co.)(Brief article)
November 30, 2008... Swiss Re is one of the world's leading reinsurers and the world's largest life and health reinsurer. The company operates through more than 70 offices in over 30 countries. Swiss Re has its Asia-Pacific headquarters in Hong Kong and...

Life proves a winner for CommInsure.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... [ILLUSTRATION OMITTED] CommInsure, part of the Commonwealth Bank Group, is a leader in the Australian insurance industry. CommInsure is Australia's largest life insurer and fifth largest general insurer. It has an extensive range...

TOWER sees growth in life insurance market.(2008 TELSTRA INSURANCE AWARDS)
November 30, 2008... [ILLUSTRATION OMITTED] Accelerate is currently generating I approximately 50 per cent of total TOWER retail life insurance sales volume after only 14 months in the market. "Having a product that is well featured, providing advisors...

Aon delighted with 'premier' award.(2008 TELSTRA INSURANCE AWARDS)(Brief article)
November 30, 2008... [ILLUSTRATION OMITTED] With more than 1700 employees in Australia, Aon is Australia's leading provider of risk management services, insurance and reinsurance broking, financial planning, and employee risks and benefits solutions. "We...

Frank--simply the best.(2008 TELSTRA INSURANCE AWARDS)(Frank O'Halloran named as the country's top insurance executive)(Brief article)
November 30, 2008... It is the second year in a row Frank O'Halloran has been named as the country's top insurance executive. "He's the architect of the whole strategy [for QBE] and has made sure it's been implemented well," former Suncorp insurance boss Diana...

QBE stands out from the rest.(2008 TELSTRA INSURANCE AWARDS)(Brief article)
November 30, 2008... [ILLUSTRATION OMITTED] Allowing for the volatility in equity markets, QBE increased its interim dividend for the half year ended 30 June 2008, resulting in a payout to shareholders up 10 per cent to $542 million. "Our philosophy is a...

RACQ secures QLD market.(2008 TELSTRA INSURANCE AWARDS)(Brief article)
November 30, 2008... RACQ Insurance is arguably the largest provider of motor vehicle insurance in Queensland and the second largest provider of household insurance. Chief executive Bradley Heath said the award is a testament to the hard work and dedication of...

Inside insurance industry's night of nights: Telstra committed to insurance industry.(2008 TELSTRA INSURANCE AWARDS--PICTORIAL)(Brief article)
November 30, 2008... Telstra appreciates the opportunity to sponsor the Telstra Insurance Awards and thanks the Australian Banking & Finance Magazine for organising the event, which recognised achievements by both the companies and also the individual achievement...

Australia's triple A rating not affected.(NEWS)
November 30, 2008... Even in the event of the government's deposits and funding guarantees being required, Australia's triple A rating will not be impacted, according to rating agency Moody's Investors Service. [ILLUSTRATION OMITTED] Moody's made the...

Insurers recognise the need to improve: as the dynamics of the insurance sector in Australia continue to change at an increasing pace Fuji Xerox Global Services sees the opportunity for insurance companies to improve the efficiency and effectiveness of various processes.(NEWS)
November 30, 2008... [ILLUSTRATION OMITTED] There has been a significant shift over the last two to three years in the insurance industry for more and more organisations to improve their back office processes. That's the observation of Sanjeev Gupta,...

Swan agrees to Westpac, St. George merger.(NEWS)
November 30, 2008... [ILLUSTRATION OMITTED] Federal Treasurer Wayne Swan has given approval to the merger of Westpac and St. George. "This decision follows a thorough assessment of its impact on the national interest, including factors such as competition,...

ANZ still has Asia in its sights despite earnings fall.(NEWS)
November 30, 2008... Australia and New Zealand Banking Group has reported a 21 per cent fall in full year net profit to $3.3 billion after its bottom line was hit by charges related to the fallout in global credit markets. The results were impacted by a $1.4...

Stewart departs with a drop in profit.(NEWS)(impact of John Stewarts departure on National Australia Bank profit )(Financial report)(Brief article)
November 30, 2008... Departing National Australia Bank chief executive John Stewart has delivered his final earnings result, with net profit for the year ending September 30 falling to $4.54 billion from $4 .58 billion the prior year. Cash profit fell 10.7 per...

2009 Current events schedule.(NEWS)(Calendar)
November 30, 2008... 2009 CURRENT EVENTS SCHEDULE Australian Financial Publications, publisher of Australian Banking & Finance Magazine, has some exciting industry events planned for 2009. Covering retail banking and finance, wholesale financial markets,...

Untapped opportunity in climate change.(NEWS)
November 30, 2008... The insurance industry has a role to play in helping the community adapt to the impacts of climate change, according to new research from Zurich Financial Services Australia. A white paper conducted with corporate climate specialists,...

Suncorp reaffirms guidance.(NEWS)(John Mulcahy saying that the company was "on track" to achieve full year earnings guidance)(Financial report)(Brief article)
November 30, 2008... Suncorp managing director John Mulcahy said the company was "on track" to achieve full year earnings guidance. "The efforts of all Suncorp people to further improve the resilience of our company have already taken effect, with our first...

Re-booting the mindset.(NEWS)
November 30, 2008... Many companies, across all segments of the financial services industry are embarking on large-scale core systems replacement programs. Current systems are typically complex, poorly integrated legacy systems that have grown organically. The...

Dr John Hewson delivered an insightful keynote address at the sixth annual Australian Banking & Finance Magazine Telstra Insurance Awards.(BEHIND THE SCREENS)
November 30, 2008... Dr John Hewson delivered an insightful keynote address at the sixth annual Australian Banking & Finance Magazine Telstra Insurance Awards. Hewson, an economist and a former federal Liberal leader, addressed the woes of the current economic and...

But we can't go past the joke Hewson delivered before he addressed the serious stuff: "There was a tragic accident--three world leaders were killed in a car crash on their way to an international meeting.(BEHIND THE SCREENS)
November 30, 2008... But we can't go past the joke Hewson delivered before he addressed the serious stuff: "There was a tragic accident--three world leaders were killed in a car crash on their way to an international meeting. One was the British PM Gordon Brown,...

"Quote unquote".(BEHIND THE SCREENS)
November 30, 2008... The following are some of the best quotes we have heard over the past fortnight: "While significant, the loss of approximately $1 billion incurred by nabCapital is considerably less than write-offs by many of our global peers." Departing...

World economy a balancing act.(NEWS)
November 30, 2008... As the world reels from the global financial crisis, searching questions are being asked about the role executive remuneration practices had in creating the current situation. During the past 12 months, a collision of market, political and...