OCR up again as RBNZ forges ahead down tightening path [UPDATED]
The Reserve Bank of New Zealand (RBNZ) raised the official cash rate (OCR) – by 25 basis points, to 3.00 per cent – for the second time in two rates decisions on April 24. Analyst commentary following the decision focuses on the downside developments which have been added to RBNZ commentary, but the clear expectation remains that further hikes will follow including at the next rates decision in June.
SRI mandate growth not the only driver of green bond interest
Issuer, investor and intermediary participants in the Australian domestic market's first-ever green bond transaction say the product is not simply one for specialist socially responsible investment (SRI) portfolios. In fact, the growth of sustainability targets across the Australian investment landscape – especially in the industry superannuation funds sector – is driving widespread excitement about the prospects for the green-bond asset class.
FSI submissions part four: banking sector competition
Arguably the hottest debate in submissions to Australia's financial system inquiry (FSI) concerns competition in the banking sector. A raft of documentation provided by smaller banks and non-bank financial institutions (FIs) seeks to demonstrate to the inquiry that the Australian system provides unfair advantages to the big four. The major banks themselves, meanwhile, largely insist the system has no need for major change to promote competition.
FSI submissions part five: structured finance
A number of submissions to Australia's financial system inquiry (FSI) encourage the government to play a role in the further development of the country's structured-finance market, noting the important role of securitisation in particular as a supporter of competition in the financial sector. Master trusts, the covered-bond issuance cap, Australia's limited range of regulatory high-quality liquid assets (HQLAs) and capital relief for securitisation also feature.
FSI submissions part three: post-retirement products
Many submissions to Australia's financial system inquiry (FSI) include some discussion of what is perceived in many quarters to be a problem with the country's superannuation system: its failure to provide a product suite to support the increasing cohort of post-retirement savers. Proposed solutions are multifarious, but many are based on a request for superannuation-sector innovation to be promoted rather than hindered.