BFF3841 Study Guide - Final Guide: Opportunity Cost, Iron Ore, Market Risk
26 Jul 2018
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Household debts in australia are at unpredictable levels/financial distress and possibly even default/implications of the mentioned scenario on the australian banking system. Websites to read on a regular basis: www. theage. com. au, www. bis. com. au, www. macrobusiness. com. au, www. adb. org, www. imf. org, www. rba. gov. au, www. backtrack. org. Look at trends over time: memorise some kpis on rba website, can use bullet points in exam, use statistics. Net interest margin: the difference between banks" funding costs and what they charge for loans. Low cash rate = cheaper to borrow from other banks overnight: banks more willing to lend to people. In order to attract more people to borrow = bank cuts interest rates (mortgage, deposit, credit card) Week 1: property prices, drivers of collapse in home ownership in au, official interest rate cuts, lower stock levels. Impact: sharp fall in bond yields and equity prices (bank share prices), large volatility in fx market (depreciation of pound: share prices with uk exposures fell sharply.
