realestatebusiness logo
Subscribe to our newsletter SIGN UP

NAB supports acknowledgement of funding costs

26 October 2009 Reporter

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

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
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Where is the biggest threat to agents in 2019?

3rd party lead generation companies
DIY models discounting sales commission
Prop-tech firms cutting out the agent value proposition
A yet unidentified proper disruptor – like Uber or Airbnb
None of the above. There is no threat.
Do you have an industry update?
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.