RBS's two outstanding economists, Kieren Davies and Felicity Emmett, have once again delivered some interesting analysis. This week they turned their cross-hairs to the banking system. A few of their charts are excerpted below. The first shows the spread between the headline variable mortgage rate and the cash rate. The second illustrates the cross-sectional market share of the banks. CBA and Westpac alone account for around 50% of all housing finance flows in Australia today. The final two charts depict the change in the banks' funding bases over time.
Real-time, stream-of-consciousness insights on financial markets, economics, policy, housing, politics, and anything else that captures my interest. Tweet @cjoye
The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."