Japanese Banks coming

Hi all,

I would like see some broker's opinions on how the Japanese banks coming to Australian market how they will affect our property market and interest rate ?

Will this a lead to a new low rate era ?  ( historically, our rate is about 8 % variable ), will this affect lead to say maybe 6% variable average for the next coming says decade or 15 years ?

Mark Bouris stirring the pot again.

http://www.theadviser.com.au/breaking-news/6559-foreign-banks-would-fail-to-compete-resi

I wouldn't get too excited about the Japs coming. If it was as easy as some make out and the profits there for the taking they'd have been here years ago.

The Freckle

The Freckle

Still.. being a foreign bank to Australia , they may be more inclined to loan on overseas investments.
worth keeping an eye on i think !

Depends on risk. The Japs got smashed in their PI market and have never recovered. I'd expect them to be risk averse and look for the cream in our market. Still if they do come it'll be through someone else's back door I'm betting.

The Freckle

The Freckle

Sorry Pat no chance at all.

Chinese Banks have been here for years and their small change is equivalent to the GDP of Japan.

They have had little or no impact on the overall borrowing market and in fact rates are higher than local Australian institutions.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview

Hi Richard,

Interesting comments you make.

Quite different to the way the possible entry of Japanese banks was promoted as that of bringing more competition, better options for borrowers etc. Or was that just my hopeful mind going into overdrive again?

Derek
North Perth Project coming up - est +$92K profit & rent returns ~9%+ - http://tinyurl.com/7untpjy
derek@eosproperty.com.au | www.eosproperty.com.au | 1300 558 114

Hi Derek

Hate to say we said that when Bank of China arrived.

Within 3 months their lending policies tightened and their interest discounts disappeared.

I saw it in the 80's in the UK with the French, Spanish and US Banks who arrived in their droves.
Promised the world yet some years most had packed up their bags and gone.

I would love to say Yes it will bring serious competition but i hate to say think it will make absolutely no difference.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview

Thanks for that - this time will be different :)

Derek
North Perth Project coming up - est +$92K profit & rent returns ~9%+ - http://tinyurl.com/7untpjy
derek@eosproperty.com.au | www.eosproperty.com.au | 1300 558 114

The Japanese Banks .. given entry to Australia as a possible market .. will do what they can to make an impact in the financial arena.

However .. my guess would be the market in Australia is very much pivotal around the four pillars at the moment and any foreign entry would find the grounds for establishment very difficult.

The only grounds they would have for greater success is that they are not likely tied to specific categories at this stage. So they can approach with an open mind our current system and find a niche.

Doubtful that such an area exists though. There is no advantage for holding a savings account .. they would all be borrowing off the same wholesale money markets that the other banks borrow off .. so the likeliness of rate competitiveness is limited. Service is being whittled away at banks .. so .. there is no specific area that they can create a leading niche category.

After saying all that .. i'm sure they arent going to enter the markets blindsight .. so i am hoping to be proven wrong.
Japanese have a habit of researching their markets thoroughly before any possible achievement .. so if they are coming they'll have bags of research and expectations. Its just knowing Australians that may be their point of weakness.

Xdrew

I saw Sumitomo come into the UK in force in the 80's and they lasted a matter of years.
At the time they were the largest Banking organisation in the world but couldnt their head around Uk pecularities.

I cant see any non Australian Bank be keen to enter into niche lending unless they have a foot on the ground for a few years.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview

I agree with Richard - it will have no effect.

Regards

Terryw

I also agree that they won't have any effect. Seems to be alot of media hype about it, but when and if they do come, I think they're going to still have a hard time competing with the Aussie banks