Let’s look at ME Bank (owned by NAB). In November 2016 it went to market for a total of $350 million paying 1.4% over the bank bill swap rates. It has now just gone back to the funders and is paying just 1.2% over the bank bill swap rate. So if cost of funds hasn’t risen then why has your mortgage?
My State Bank went to the market in December 2014 for $300 million and paid 0.95% over the bank bill swap rate. Have rates really gone up in the subsequent two and a half years?
In October 2016 it went back to the market for a similar borrowing and paid just 1.3% over the one month bank bill swap rate. At worse we are looking at an increase of just 0.35% in that bank’s funding cost.
Why is your member of parliament silent?
Why are the media silent?
In July 2016 the CBA raised $2.275 billion at 1.21% over the swap rate. In January it came back and borrowed again on January 9th at not a higher rate but a lower rate of 1.13% over the swap rate.
Also destroying the rising rates myth is Suncorp which entered the market in August for $350 million and priced at 1.35% over the swap rate but went back to the market just a few months ago on December 31st for another trench at this time, just 1.30% over swap rate. So the cost of funds are coming down.
Why are banks going up?
Why aren’t they afraid of our police, the RBA, APRA and our Treasurers State and Federal?
Beats me but we are going to ask them and we need your help to on send our petition to the local MPs to halt this obvious greed. We need your help. Last time we called for an inquiry into the banks we received over three and a half thousand supporters and this was passed on to Hockey and when he got into power we saw the inquiry – shame he put a big four banker ex CEO in charge. A wolf in charge of the hen house!!
Kevin Young // Club Founder