Banks continue to face funding cost pressures

Banks continue to face funding cost pressures

by 1 comments

More out of cycle rate movements may be on the horizon, as banks try to recover funding costs.

KPMG head of banking Andrew Dickson said banks are trying to cope with a lot of pressures at the moment, including higher funding costs, which have not been fully recovered as of yet.

“The banks’ biggest challenge is adapting their business model to cope with the competing strains of constrained lending growth, ongoing funding pressure, ever higher regulatory hurdles, and a transition to new mobile delivery channels and competitors,” he said.

Head of financial services at KPMG Michelle Hinchliffe thinks the banks need to look to the future rather than short-term solutions.

“While they are implementing a number of cost reduction measures, the full impacts are yet to flow through to the results.

“They need to make structural, long-term changes that will sustain a lower cost base.

“Bank funding conditions have continued to be tough, and Australia’s banks, while some of the healthiest and best run in the world, will continue to be impacted by the cost of funding.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Depends on the group
Do you have an industry update?