Weekly Update: 12th April

Highlights this week:

• Key data: In February 2024, $26.4 billion was lent for housing purposes, an additional $16.5b was lent for external refinancing and $9.7b for internal refinancing of existing loans.

Quote of the week:
“We need sharper elbows when it comes to marking out our national interest and we need to be willing to break with old orthodoxies and pull new levers to advance the national interest. We have to think differently about what Government can – and must – do to work alongside the private sector to grow the economy. To boost productivity, improve competition and secure our future prosperity.” 

– Prime Minister Anthony Albanese speaking at the Queensland Media Club 

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Parliamentary Update:

• Treasurer Jim Chalmers released proposed reforms in relation to merger rules and processes.  
• Housing Minister Julie Collins released draft legislation today to introduce tax incentives to encourage investment and construction in the build‑to‑rent sector.  
• The Prime Minister delivered a key speech at the Queensland Media Club on the topic of encouraging local investment and manufacturing. 
• Assistant Minister Andrew Leigh authored an opinion piece in the Daily Telegraph on foreign investment, and took part in an interview with the ABC on the Government’s proposed merger reforms.  
• Next week:
  • 16 April – Senate Rural Affairs Committee public hearing on bank closures. 
  • 15-16 April – Senate Select Committee on Supermarket Pricing public hearings  

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Policy Update:

The ABA: 

• met with Singapore stakeholders on scams initiatives in Australia and Singapore  
• met with Canadian banking association and the American Banking Association to discuss the approach to fighting scams in Australia 
• met with AUSTRAC to discuss the development of a forward plan for AML/CTF Guidance 
• met with colleagues at the American Bankers Association to exchange insights on strategies to help tackle scams 
• met with the CEO of the Australian Securitisation Forum to discuss recommendations from the House Standing Committee on Economics report on competition.  
• attended the Joint REEDI/SCG April Workshop 
• met with PEXA where ABA was briefed on PEXA’s options for the phase out of Cheques  
• hosted an Economics Webinar on the Housing Crisis 

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Regulatory Update:

• RBA – Research Discussion Paper on ‘Valuing Safety and Privacy in Retail Central Bank Digital Currency’. Read more 
• ASIC – ASIC obtains Federal Court orders appointing receivers over digital currency assets of blockchain mining companies. Read more 

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Economic Update:

• In February 2024, $26.4 billion was lent for housing purposes, an additional $16.5b was lent for external refinancing and $9.7b for internal refinancing of existing loans. 
• Overall, housing lending remains down from the peaks during the period of very low interest rates of 2021 / 22, but remains elevated from pre-COVIDs levels. 
• On average, the major banks account for around 71 per cent of all housing lending, with other ADIs accounting for around 24 per cent and non-ADIs accounting for 5 per cent, Figure 1. 

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Communications and Media:

• The ABA posted on LinkedIn calling for a mandatory scams code to apply to social media platforms, posting data from the National Anti-Scam Centre showing overall scam losses in the 2023 December quarter were down by 43% compared to the previous year outlining the good work the banking industry has been doing. Read the post here  
• ABA CEO Anna Bligh attended the CEW (Chief Executive Women) Leaders Program hosted at the Allens Linkaters offices in Sydney

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Coming up next week:

Parliament/ regulators:  

• 15-16/4 Senate Select Committee – Supermarket Prices 
• 16/4 Senate Regional/Rural Bank Closures Hearings (Bribie Island, QLD) 

In the media: 

• 18/4 RBA Bulletin 

Data announcements:  

• 18/4 Labour Force 

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Upcoming Submissions:

Published submissions

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Selected Media:

•  The Australian – Home loan interest rates: whether a cliff or a hill, we’re doing well 
• AFR – Shock US inflation ends chance of RBA rate cuts this year 
• SMH – Afterpay lifts credit limit while bracing for looming buy now, pay later laws 
• News.com.au – New Commonwealth Bank data shows ‘rentvest’ trend on the rise for home buyers 
• AFR – Merger reforms address two burning questions for bankers, lawyers 

Weekly Update