9News | Banks were quick to pass on rate hikes – just not for savers by 9News

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After the Reserve Bank of Australia lifted the cash‑rate target to 4.35 %, the four major banks quickly announced higher borrowing costs but have been slower to pass the increase on to savers. So far only Westpac has confirmed a rise, offering a 5.75 % ongoing rate on its Spend & Save account for customers aged 18‑34 who meet monthly bonus conditions, while its base rate remains unchanged for others. AMP already provides a “no‑strings‑attached” rate of 5.10 %, and Macquarie will raise its condition‑free account to 5.00 % from 22 May. The Commonwealth Bank, NAB and ANZ say their savings rates are under review and, based on past behaviour, are likely to pass on only part of the hike or impose strict eligibility criteria. Analysts note that after the March increase, bonus‑linked rates rose modestly (about 0.28 pp) while base rates barely moved, and that delaying or limiting pass‑throughs helps the banks protect profit margins—profits that recently hit a collective $43 billion pre‑tax, placing them among Australia’s most lucrative companies.

Read more: https://www.9news.com.au/national/major-banks-hold-off-passing-interest-rate-hike-onto-savers/95de7946-5c86-403e-8108-d555dadb5b34

#ReserveBank #Westpac #AMP #MacquarieBank #CommonwealthBank #NAB #ANZ #RioTinto #BHP #national

9News | Big four making bank off Aussie dream of home ownership by 9News

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New research by the Australia Institute reveals that Australia’s four major banks – CBA, NAB, Westpac and ANZ – earn an average of $228,900 in profit over the 30‑year life of a typical $736,000 home loan, with owner‑occupier mortgages accounting for just 22.7 % of their loan book but delivering 39.3 % of profits, amounting to $16.9 billion of the banks’ $43 billion pre‑tax earnings last year. The Institute’s co‑CEO Richard Denniss called these figures “obscene” as borrowers face a third consecutive interest‑rate rise, now at 4.35 %, which he warned could push the economy toward recession and force the Reserve Bank of Australia to reverse policy dramatically.

Read more: https://www.9news.com.au/national/big-four-banks-how-much-they-make-off-home-loans/dbbbe7b8-4935-4908-b346-524fa3efca6b

#RichardDenniss #AustraliaInstitute #ReserveBank #MattGrudnoff

Times of India | 100% FDI allowed in insurance sector under automatic route, inflows for LIC capped at 20%

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The Indian government announced that foreign direct investment (FDI) in insurance companies can now be up to 100 % of paid‑up equity under the automatic route, subject to approval by the Insurance Regulatory and Development Authority of India (IRDAI). This change, aligned with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, lifts the previous ceiling of 74 % and follows parliamentary approval of the Sabka Bima Sabki Raksha Bill. While all insurers may receive full foreign ownership, Life Insurance Corporation of India (LIC) remains restricted to a maximum of 20 % foreign investment. The new rules also extend the 100 % FDI limit to insurance intermediaries, and require key top‑level positions (chairperson, managing director or CEO) to be held by resident Indian citizens, with any ownership changes complying with RBI pricing rules under FEMA.

Read more: https://timesofindia.indiatimes.com/business/india-business/100-fdi-allowed-in-insurance-sector-under-automatic-route-inflows-for-lic-capped-at-20/articleshow/130716877.cms

#IRDAI #LIC #DPIIT #ReserveBank #SabkaBima #Indiangovernment #Parliament #

Times of India | Lucknow woman thwarts Rs 60 lakh digital arrest scam targeting father

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A 50‑year‑old private‑sector employee in Lucknow, Huma Mustafa, prevented a Rs 60 lakh “digital‑arrest” fraud targeting her 86‑year‑old father, Hamid Mustafa, after noticing his unusually secretive behavior. She promptly reported him to the Hazratganj Cyber Crime Cell, where investigators learned that scammers had impersonated CBI and RBI officials via a WhatsApp video call, falsely accusing him of involvement in a human‑trafficking case and demanding the money to “settle” the fabricated charge. Police intervened, halted the payment, counselled the victim, and examined his devices, stressing that cyber‑awareness and vigilance are the first line of defence and urging the public to verify unknown calls, avoid sharing personal or banking details, and report suspicious activity immediately to the national helpline 1930.

Read more: https://timesofindia.indiatimes.com/city/lucknow/lucknow-woman-thwarts-rs-60-lakh-digital-arrest-scam-targeting-father/articleshow/130478510.cms

#HumaMustafa #CentralBureau #ReserveBank #CyberCell #CyberHelpline #HamidMustafa #SunilKumarSingh

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Times of India | Will Tata Sons get listing waiver? RBI tweak will make it 'upper NBFC'

The Reserve Bank of India is proposing a simpler asset-size threshold of Rs 1 lakh crore to identify large NBFCs for stricter regulation, replacing a complex scoring system. This change could place Tata Sons, with assets of Rs 1.75 lakh crore, under tighter scrutiny, contingent on its application to surrender its core investment company registration being approved.

Read more: https://timesofindia.indiatimes.com/business/india-business/will-tata-sons-get-listing-waiver-rbi-tweak-will-make-it-upper-nbfc/articleshow/130182197.cms

#tatasons #rbi #reservebank

undefined | RBI proposes asset-based criteria for PSU inclusion in upper layer NBFC

The Reserve Bank of India has put forward a draft amendment to its “Non‑Banking Financial Companies’ Registration, Exemptions and Framework for Scale‑Based Regulation” that would replace the existing methodology for classifying upper‑layer NBFCs with a simple asset‑size threshold. Under the proposal, any NBFC with assets of **Rs 1 lakh crore or more** would be placed in the upper‑layer (NBFC‑UL) category, and the draft also calls for the inclusion of government‑owned NBFCs that meet this criterion. This shift aims to create a more transparent and absolute basis for identification, moving away from the current multi‑parameter approach.

The move comes as the RBI’s ongoing discussions about the listing requirements for Tata Sons intensify. Tata Sons, which falls under the upper‑layer NBFCs, has not listed its shares despite the October 2025 deadline, even though it reported an asset base of **Rs 1.75 lakh crore** as of March 2025. Existing norms obligate the top‑15 NBFC‑UL entities to be listed, and the new framework would maintain that requirement while also bringing government‑owned NBFCs into the same regulatory tier under an ownership‑neutral regime.

In addition to the asset‑size rule, the RBI draft proposes that all NBFC‑UL entities be permitted to use state‑government guarantees as a credit‑risk‑transfer instrument without any preset limit, provided certain conditions are met. Governor Sanjay Malhotra had earlier signaled that a revised regulatory framework for NBFCs was forthcoming, and this amendment reflects that intent, signalling a broader move toward uniform, size‑based oversight and greater flexibility for capital‑raising mechanisms within the sector.

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#rbi #psu #reservebank #nbfc #tatasons

@RaymondPierreL3
Yes, reasons compelling: “why the RBA ought to wait before jumping on the cash rate lever.”
In general too much speculation - unbuttoned from the real world - feels like a bad thing; who is it that benefits from the churn? 🤔.
But there are lots of assumptions overdue for examination or re-examination & this could be a good time to start talking about them. Always a pleasure to read your contribution! 🙂

#AUSPol #RBA #ReserveBank #economics #speculation #churn #CashRate