The Banking Royal Commission in 60 seconds
The banking Royal Commission has revealed some shocking details about the behaviour of Australian banks, however the report has protected small businesses.
Yesterday the banks rallied in terms of share price and with no major fines or bans Australian shares rallied today, led by the big four banks, with investors seemingly relieved that the financial services Royal Commission had not recommended harsher measures.
ANZ was up 6.11%, Commonwealth Bank added 4.69% and Westpac increased 6.59%.
NAB rose 4.74% after its Chief Executive, Andrew Thorburn, said this morning he had cancelled the remainder of his two months’ leave and added he was “more determined than ever” to lead the bank’s response to Kenneth Hayne’s report.
Mortgage brokers were left battered after the Hayne report recommended reforms to trailing commissions, with Mortgage Choice down more than 24% and Australian Finance Group losing more than 28%.
You might be asking yourself, how does the Royal Commission affect me? The answer is, it already has.
Over the past twelve months we have seen lending conditions and access to credit tighten. I’d expect they will remain that way, and there’s a likelihood of out of cycle interest rate increases.