Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

NAB supports acknowledgement of funding costs

By Staff Reporter
26 October 2009 | 1 minute read

NAB’s chief executive Cameron Clyne has put his weight behind a proposal that would see banks publishing the benchmark cost-of-funds rate.

Advertisement
Advertisement

According to a report in The Australian, Mr Clyne said publishing the benchmark rate would help soothe the heated debate surrounding variable mortgage rate movements disconnected from the official cash rate.

"Bank funding is becoming more expensive -- the marginal cost is easing but the average cost is rising -- and it will also increase due to stronger regulatory standards on things like capital and liquidity," Mr Clyne told the paper.

According to Mr Clyne, the benchmark would be calculated from several key inputs such as the 90-day bank bill rate and other measures, and would help customers and brokers predict future interest rate movements now that banks were adjusting rates independently of Reserve Bank monetary policy.

NAB supports acknowledgement of funding costs
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.