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Of course it is. In the glory days pre-GFC the banks simply followed the Res B down. Did anyone here about "cost of funding" then? If you have any doubt that they were on a gravy train, check out their share prices.

Marty, the banks are issuing notes between 7 and 8%.

I was thinking about this when I heard what the Société Générale guy had to say. Are these notes issues just smoke screens, a bit of money they are willing to pay over the odds for to help maintain a pretext?

Got a WBC one today. They want $750 mil for Converting Pref Shares with an indicative price of 7.6 to 7.9%. They are not going to be ringing you offers if that's what they have to pay for money. A Q. for Token Funder: If the RBA drops int rates, does the 90 day bill rate automatically follow?

I have a prospectus in hand for ANZ Subordinated Notes. They want to raise $500 mil @ the bank bill rate + 2.75 to 3% [subject a book build]. That works out at 7.11% at the lower premium. They're not going to be keen to offer discounts on standard variable with THAT money.

Not at the coal face they ain't.

All you brokers must take a little comfort from this. With the banks continually cutting staff I see them relying on you more than ever. I could see them setting up preferred brokers [the way car insurers have preferred repairers] with strict guidelines so that your grading is accepted and the...

I'm no apologist for the banks, but I do not believe "collusion". Better to be found guilty of murder. But like experienced road racers they know to take turns leading the pack. They didn't have to ring around to decide who would be the first to move rates up. ANZ saw a chance, knowing the...

Mech, I have been reading/watching stuff on fractional banking for many years and still can't answer that question. If you listen to the bankers, every dollar they lend is borrowed or sourced from their balance sheet. There is a statuary reserve mandate that says they can't borrow more than...

Like you, I can't remember the banks saying their cost of funding WASN'T rising that quickly so they didn't need to pass it all on.