The banks Net Interest Margin (NIM) is being squeezed too because of greater competition from non-core banks (online banks) that don't have to provide conventional services so they can offer higher interest rates on deposits.
The banks have also been enjoying easy liquidity with the YEN carry trade which is really on the verge of unwinding because of the Yen bond yields rising and the BOJ having to lift interest rates.
Source: barseico
5 Comments
“Conventional services”… Is that all I am to you, Big Four?
Most mortgages it’s less than $90 a month or something. It’s a problem for those genius kids who managed to own 25 investment properties by the age of 17 without help from their parents or whatever nightmare that is
Are those “conventional services” really costing them that much? Seems every week a branch is closed and when they’re “refurbished” they have about $500 of crappy furniture and some fake plants
What about savings rate increases or do we have a one-way street?
Nice of them to want to get ahead of it. Can’t remember the last time they got ahead of a drop though.