• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Funding diversity suits Bendigo

15 February 2011 5:28PM
Bendigo and Adelaide Bank is hoping that banks will finally get the opportunity to sell covered bonds, partly to help moderate pricing in the term deposit market.Asked about margin trends at yesterday's investor briefing, Mike Hirst, the bank's managing director, said, "A lot of it will depend on what happens in the [term deposit] market.  "And there's a few things working in our favour there, one is the recovery of fixed interest markets generally, two is RMBS and three, I think, is covered bonds."We were originally against covered bonds. We felt that they would give the major banks an advantage similar to what they had with the government guarantee, whereby they could hoover up a lot of funding and then use that to grab market share.  "However, over time, I think we've come to the view that the ability of the majors to access other funding opportunities should see some normalisation around retail term deposits and, as a result of that, we hope that we've seen the worst in that market and that going forward that will underpin the continued strength of the margin."The bank said its net interest margin improved by only one basis point over the six months to December 2010, to 2.15 per cent, but put the current "NIM run rate" at 2.23 per cent on a gross basis (before allowing for sharing of margin income with owners of Community Bank franchises).

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use