Please go to PGC thread to see my sumary of this article.
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Please go to PGC thread to see my sumary of this article.
Hi janner,and a special hi to Snoopy.Looks as though the Banks could get fried.Article in The Age headed "Drop in banks' cross-border lending".; The larger Australian banks rely on global funding markets.Not a good secure Sauce [source] I would have thought.Warnig bells.?
Just found the article Percy. It is about European banks lending money to do development in Australia and now wanting their money back. That is a problem for European banks, not Australian banks.
The last line of the article
"However given the larger Australian banks rely on global funding markets, they would be affected by the turmoil in the markets that would follow any break-up of the euro area or a European sovereign or banking default, he said."
doesn't appear to follow from the content of the rest of the article. It reads like a desperate attempt to give European bank loan problems a 'relevant to Australia' spin.
SNOOPY
According to the FY2011 ANZ annual report, ANZ don't have to repay any of their overseas bonds or notes until 2015 at the earliest. This 2015 date relates to 200 million GBP. If demand for funds from ANZ customers goes up then ANZ might have a problem raising more funds in Europe. But this seems unlikely in the current financial climate in Australia.
If demand goes down they can repay some bonds early without penalty. I don't see the same threat to the likes of ANZ that you do.
Again using ANZ as an example, total overseas bonds on issue are $A56,551m compared to deposits of $A368,729m. I would hardly say ANZ is beholden on overseas borrowings for funds. So far I am not even the slightest bit worried that the likes of ANZ is in any kind of trouble. Can you supply anything more concrete on what you might be on about?
SNOOPY
Glad we agree we are comfortable with funding,you with ANZ and me with HNZ.
Have just mailed back the 30c offer form in an unstamped envelope with the words - "Get stuffed you thieving Bastards!!" printed in bold, black marker pen. Hope they don't mind paying the postage!!
Hi Snoopy.
Think you will find article in "The Age" positive;"ANZ to close fund after $100m lost".They don't appear to have a very good investment record.