Tag Archives: Consumer Loans (TRBC level 4)

WhatsApp will soon provide a peer-to-peer payment service in Brazil: the head of the central bank | Instant News


FILE PHOTOS: 3D printed Whatsapp logo placed on keyboard in illustration taken on April 12, 2020. REUTERS / Dado Ruvic / Illustration

BRASILIA (Reuters) – WhatsApp, Facebook Inc’s messaging service, will soon enter the Brazilian market by providing peer-to-peer (P2P) payment services, central bank president Roberto Campos Neto said Monday.

In a press conference marking the launch of the new instant payment platform “PIX”, Campos Neto also said the central bank has held talks with Google and other “big technology” companies about entering the instant payments market in Brazil.

“WhatsApp will soon start doing P2P. I have spoken a lot with their CEO, we are making great progress. He told me that the process (with us) is faster than in other countries, “said Campos Neto.

“Our only concern is that we have to go through all the approval criteria and we have a system that encourages competition,” said Campos Neto.

The ubiquitous messaging service in Brazil is trying to enter the payment market by launching the service on June 15. But eight days later the central bank and anti-trust regulators blocked the service, saying it should be reviewed for issues of fair competition and data privacy.

When asked if WhatsApp would operate within the recently launched “PIX” instant payment system, Campos Neto said there would be room for other platforms besides PIX.

The PIX went live at 0930 local time on Monday, and according to the central bank, some 72 million registrations have been opened for the service that allows people and businesses to make bank transfers 24 hours a day.

The total includes 30 million individuals and 1.8 million businesses, a central bank official said Monday.

Campos Neto said the PIX will increase the speed, convenience and efficiency of conducting financial transactions, from buying ice cream to buying a car, as well as lowering costs and encouraging competition between financial companies.

Reporting by Jamie McGeever and Marcela Ayres; Edited by Chris Reese

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Westpac is teetering by spending needs as Australian banks adjust to the economic pandemic | Instant News


SYDNEY (Reuters) – Westpac Banking Corp. WBC.AX Its rivals are lagging behind as a dated system forces it to spend, rather than save, while profit margins were eroded by record low interest rates, investors said after Australia’s biggest bank issued revenue and trade renewals.

FILE PHOTO: A woman exits the ground floor of an office building bearing the Westpac logo amid easing restrictions on coronavirus disease (COVID-19) in the Central Business District of Sydney, Australia, 3 June 2020. Image taken 3 June 2020 REUTERS / Loren Elliott

Extensive organization, aging software, and convoluted procedures have been Westpac’s main enemies, investors said, leading to heavy fines for violating anti-money laundering laws and loss of market share in the mortgage, its main product.

That has made the 203-year-old lender prioritize expensive restructuring and system upgrades over loan growth.

Cheap Westpac stock makes it attractive to investors. However, few are convinced of the rapid rise in prices given the central bank has cut interest rates three times to help the post-pandemic economic recovery, squeezing bank interest margins.

“The question the market is asking itself is: is it cheap enough?” said portfolio manager Matthew Ryland at Greencape Capital, an investor in all of Australia’s “Big Four” banks.

Westpac has assets of more than A $ 900 billion ($ 650 billion) and was for many years the second largest bank by market value. After seeing its share price drop 28% since the breach surfaced a year ago, it was passed last month by National Australia Bank Ltd (NAB) NAB.AX.

The bank’s shares are now valued at 0.89 times their book value, the second lowest of the Big Four, according to data from Refinitiv Eikon. In comparison, several Commonwealth Bank of Australia (CBA) leaders CBA.AX is 1.7.

“Westpac has had a bad year, but there could be some gains relative to other banks,” said Hugh Dive, chief investment officer at Atlas Funds Management, which also owns Westpac shares.

In its annual earnings report, Westpac said it was working to restore market share in mortgages after caution was combined with the inefficiency of sending prospective borrowers elsewhere.

New management since then and a cost-focused strategy scheduled for May have also given hope for a revival, albeit gradually.

“Westpac is 12 to 18 months behind peers when it comes to gaining control of the cost-out program,” said Ryland of Greencape.

Westpac declined to comment.

UBS, which has a “buy” recommendation on Westpac shares, in a client note said all banks should spend money on IT, compliance and other business enhancements because of COVID-19, but Westpac’s cost challenges are greater.

The average recommendation for the Westpac stock of 14 analysts is 2.5, of which 2 is “buy”, 3 is “hold” and 4 is “sell”.

Their top choice is NAV at 2 followed by Australia and New Zealand Banking Group Ltd ANZ.AX at 2.1, Refinitiv Eikon data show.

CBA, widely considered to have better cost control and IT infrastructure, was rated 3.4, reflecting its higher price tag.

($ 1 = 1.3845 Australian dollars)

Reporting by Paulina Duran in Sydney; Edited by Christopher Cushing

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Westpac is teetering by spending needs as Australian banks adjust to the economic pandemic | Instant News


SYDNEY (Reuters) – Westpac Banking Corp. WBC.AX Its rivals are lagging behind as a dated system forces it to spend, rather than save, while profit margins were eroded by record low interest rates, investors said after Australia’s biggest bank issued revenue and trade renewals.

FILE PHOTO: A woman exits the ground floor of an office building bearing the Westpac logo amid easing restrictions on coronavirus disease (COVID-19) in the Central Business District of Sydney, Australia, 3 June 2020. Image taken 3 June 2020 REUTERS / Loren Elliott

Extensive organization, aging software, and convoluted procedures have been Westpac’s main enemies, investors said, leading to heavy fines for violating anti-money laundering laws and loss of market share in the mortgage, its main product.

That has made the 203-year-old lender prioritize expensive restructuring and system upgrades over loan growth.

Cheap Westpac stock makes it attractive to investors. However, few are convinced of the rapid rise in prices given the central bank has cut interest rates three times to help the post-pandemic economic recovery, squeezing bank interest margins.

“The question the market is asking itself is: is it cheap enough?” said portfolio manager Matthew Ryland at Greencape Capital, an investor in all of Australia’s “Big Four” banks.

Westpac has assets of more than A $ 900 billion ($ 650 billion) and was for many years the second largest bank by market value. After seeing its share price drop 28% since the breach surfaced a year ago, it was passed last month by National Australia Bank Ltd (NAB) NAB.AX.

The bank’s shares are now valued at 0.89 times their book value, the second lowest of the Big Four, according to data from Refinitiv Eikon. In comparison, several Commonwealth Bank of Australia (CBA) leaders CBA.AX is 1.7.

“Westpac has had a bad year, but there could be some gains relative to other banks,” said Hugh Dive, chief investment officer at Atlas Funds Management, which also owns Westpac shares.

In its annual earnings report, Westpac said it was working to restore market share in mortgages after caution was combined with the inefficiency of sending prospective borrowers elsewhere.

New management since then and a cost-focused strategy scheduled for May have also given hope for a revival, albeit gradually.

“Westpac is 12 to 18 months behind peers when it comes to gaining control of the cost-out program,” said Ryland of Greencape.

Westpac declined to comment.

UBS, which has a “buy” recommendation on Westpac shares, in a client note said all banks should spend money on IT, compliance and other business enhancements because of COVID-19, but Westpac’s cost challenges are greater.

The average recommendation for the Westpac stock of 14 analysts is 2.5, of which 2 is “buy”, 3 is “hold” and 4 is “sell”.

Their top choice is NAV at 2 followed by Australia and New Zealand Banking Group Ltd ANZ.AX at 2.1, Refinitiv Eikon data show.

CBA, widely considered to have better cost control and IT infrastructure, was rated 3.4, reflecting its higher price tag.

($ 1 = 1.3845 Australian dollars)

Reporting by Paulina Duran in Sydney; Edited by Christopher Cushing

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New Zealand’s central bank will review restrictions on mortgage lending, delaying the increase in bank capital | Instant News


WELLINGTON (Reuters) – New Zealand’s Central Bank said on Wednesday that it will consult next month on whether to reimpose limits on the number of “high-risk loans” banks can make, amid growing fears of a housing bubble in the country.

FILE PHOTOS: Two people walk towards the entrance of the Reserve Bank of New Zealand which is located in the capital city of New Zealand, Wellington, 22 March 2016. REUTERS / Rebecca Howard

The Reserve Bank of New Zealand removed the loan-to-value ratio (LVR) restriction on mortgage loans until May earlier this year to spur credit flows and boost an economy hit by the coronavirus pandemic.

But historically low interest rates, no LVR limits, and chronic shortages have driven prices up in an already booming housing market.

New Zealand house prices have surged nearly 90% over the past decade, with some centers rising 20-30% in the last three years.

The RBNZ said it would consult on restoring LVR restrictions on high-risk loans from March.

“The situation in the lending market has improved and we are now observing rapid growth in high-risk investor lending,” Deputy Governor Geoff Bascand said in a statement.

Under the LVR cap, banks can only provide up to 20% of their housing mortgage loan to owners who pay less than 20% in deposits. Not more than 5% of such a loan can be provided to investors with deposits of less than 30%.

The RBNZ also said on Wednesday that it had postponed the start of increasing bank capital requirements until 2022. Increasing the prudential capital buffer will not start until July 2022.

Westpac Bank said the measures were designed to suppress housing lending and support business lending.

“LVRs on property investors may dampen the heat of the housing market,” said Chief Economist Dominick Stephens.

“Meanwhile, the capital requirement will be a brake, especially for business loans. Therefore, delaying their introduction in favor of business loans. “

The RBNZ also announced that the dividend payout restrictions will be maintained until March 31, 2021, or later if needed.

The RBNZ is widely expected to hold interest rates at 0.25% at its meeting on Wednesday, while introducing new monetary policy tools to push borrowing costs for lenders lower.

Reporting by Praveen Menon and Shashwat Awasthi; Edited by Shailesh Kuber, Jonathan Oatis and Sonya Hepinstall

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New Zealand’s central bank will review restrictions on mortgage lending, delaying the increase in bank capital | Instant News


WELLINGTON (Reuters) – New Zealand’s Central Bank said on Wednesday that it will consult next month on whether to reimpose limits on the number of “high-risk loans” banks can make, amid growing fears of a housing bubble in the country.

FILE PHOTOS: Two people walk towards the entrance of the Reserve Bank of New Zealand which is located in the capital city of New Zealand, Wellington, 22 March 2016. REUTERS / Rebecca Howard

The Reserve Bank of New Zealand removed the loan-to-value ratio (LVR) restriction on mortgage loans until May earlier this year to spur credit flows and boost an economy hit by the coronavirus pandemic.

But historically low interest rates, no LVR limits, and chronic shortages have driven prices up in an already booming housing market.

New Zealand house prices have surged nearly 90% over the past decade, with some centers rising 20-30% in the last three years.

The RBNZ said it would consult on restoring LVR restrictions on high-risk loans from March.

“The situation in the lending market has improved and we are now observing rapid growth in high-risk investor lending,” Deputy Governor Geoff Bascand said in a statement.

Under the LVR cap, banks can only provide up to 20% of their housing mortgage loan to owners who pay less than 20% in deposits. Not more than 5% of such a loan can be provided to investors with deposits of less than 30%.

The RBNZ also said on Wednesday that it had postponed the start of increasing bank capital requirements until 2022. Increasing the prudential capital buffer will not start until July 2022.

Westpac Bank said the measures were designed to suppress housing lending and support business lending.

“LVRs on property investors may dampen the heat of the housing market,” said Chief Economist Dominick Stephens.

“Meanwhile, the capital requirement will be a brake, especially for business loans. Therefore, delaying their introduction in favor of business loans. “

The RBNZ also announced that the dividend payout restrictions will be maintained until March 31, 2021, or later if needed.

The RBNZ is widely expected to hold interest rates at 0.25% at its meeting on Wednesday, while introducing new monetary policy tools to push borrowing costs for lenders lower.

Reporting by Praveen Menon and Shashwat Awasthi; Edited by Shailesh Kuber, Jonathan Oatis and Sonya Hepinstall

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