Regarding the limiting of funds, the increase in market share, and future strategy for Westpac, see
this article from Business Spectator.
Thanks for highlighting that article. Interesting reading and the points highlighted are valid. However i dont think its a concern for Westpac.
Who cares if they now reduce market share on new loans, they already have a decent share and are in a potentially win win situation.
If customers dont churn, then they just adjust variable interest rates accordingly. Make no mistake funding is available, the issue if the cost (which effects the spread).
If customers churn then they still have the balance of the customers on higher rates and funding pressure will reduce.
I am more concerned with NAB trying to regain market share now, they are behind the eight ball with the risk that their margin spread will be lower and the risk of writing will be higher due to higher property prices now.
By the way Steve good posting above.
I talked about the importance of game strategy last year when analysing the banks during the financial crisis, and this is playing out again now.
It also highlights in my opinion the importance of a switched on CEO and board of directors because they are the primary setters of strategic direction.