The Australian Banking Sector

V

villiagegate

New Member
I'm seriously considering pulling everything back I'm to cash in a safety deposit box. I work for one of the big four and I'm becoming increasingly alarmed by their exposure to a downturn in housing. It looks to me like Europe will freeze up, the banks won't be able to borrow, our bubble will start picking up to the downside and that will be hell on the banks.

I'm curious to know what others think re the stability of our banking sector? Is it time to get out?
 
If we're talking about leveraged property investors, then yeah, unless they wanna sell at the bottom :P

Somehow, the safety deposit box idea sounds fishy. :/
 
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
 
Jonesy said:
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Click to expand...

you best be calling the bank to arrange a large withdrawal then
 
villiagegate said:
I'm seriously considering pulling everything back I'm to cash in a safety deposit box. I work for one of the big four and I'm becoming increasingly alarmed by their exposure to a downturn in housing. It looks to me like Europe will freeze up, the banks won't be able to borrow, our bubble will start picking up to the downside and that will be hell on the banks.

I'm curious to know what others think re the stability of our banking sector? Is it time to get out?
Click to expand...

Why would you take your cash from an interest earning bank account and put it in a non interest earning BANK deposit box? Why not take it home? They have your money either way in your scenario.
 
hiho said:
Jonesy said:
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Click to expand...

you best be calling the bank to arrange a large withdrawal then
Click to expand...

Has it already finished?
 
Smoothcriminal said:
Why would you take your cash from an interest earning bank account and put it in a non interest earning BANK deposit box? Why not take it home? They have your money either way in your scenario.
Click to expand...

That's why it sounded fishy :|

*puts 20 cent coins under pillow*
 
Jonesy said:
hiho said:
Jonesy said:
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Click to expand...

you best be calling the bank to arrange a large withdrawal then
Click to expand...

Has it already finished?
Click to expand...


Do you mean this Government Guarantee?

http://www.guaranteescheme.gov.au/
About the Scheme
The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding (the Guarantee Scheme) was announced by the Government on 12 October 2008 and formally commenced on 28 November 2008. The Guarantee Scheme closed for new liabilities at the end of March 2010.
Click to expand...

Or is there another scheme that protects all depositors?
 
jnkmbx said:
Smoothcriminal said:
Why would you take your cash from an interest earning bank account and put it in a non interest earning BANK deposit box? Why not take it home? They have your money either way in your scenario.
Click to expand...

That's why it sounded fishy :|

*puts 20 cent coins under pillow*
Click to expand...

I never said anything about a bank safety deposit box. However, it's more about moving in to cash ahead of a possible run on deposits than anything else. Read 'shitstorm', published by the Melb uni press(?) to see what happened last time.
 
I have to agree it does worry me abit, there is a chart showing the big-4 banks and the percentage of there total assets they have exposed to the housing market, its massive CBA is 65% i believe.

Westpac was recently selling property securitys so there getting them off there books, wheather thats because there toxic or them just being oportunistic who knows.

One alarming stat is Australia private debt which i believe is the biggest in the world (credit card, personal loan, morgage).

These bank glitches are fishy too, i smell a rat with that.
 
villiagegate said:
I'm seriously considering pulling everything back I'm to cash in a safety deposit box. I work for one of the big four and I'm becoming increasingly alarmed by their exposure to a downturn in housing. It looks to me like Europe will freeze up, the banks won't be able to borrow, our bubble will start picking up to the downside and that will be hell on the banks.

I'm curious to know what others think re the stability of our banking sector? Is it time to get out?
Click to expand...

yeah take it out. Put it somewhere safe and see what happens. Probably safer in your hands than the banks i reckon. Go with your gut. If your becoming increasingly alarmed then do it tomorrow! I am not at panic stage but have already moved some of my humble account into cash and burried 6 feet deep in a forrest next to some wild mushrooms. :)

We are living in uncertain times and the banks are probably in more trouble than we realize. Pretty scary really. And if we are just trusting that the gov backed savings thing will always be there for us i think we could be in for a rude surprise.
 
Jonesy said:
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Click to expand...

I asked a supervisor in the bank that question the other day, or more specifically "what happens if theres a bank run after that runs out" and got smirked at and a reply of 'that wont happen here.Its different here mate.'
 
Gino said:
Jonesy said:
hiho said:
you best be calling the bank to arrange a large withdrawal then
Click to expand...

Has it already finished?
Click to expand...


Do you mean this Government Guarantee?

http://www.guaranteescheme.gov.au/
About the Scheme
The Australian Government Guarantee Scheme for Large Deposits and Wholesale Funding (the Guarantee Scheme) was announced by the Government on 12 October 2008 and formally commenced on 28 November 2008. The Guarantee Scheme closed for new liabilities at the end of March 2010.
Click to expand...

Or is there another scheme that protects all depositors?
Click to expand...

http://forums.silverstackers.com/message-73171.html#p73171

Ends October 12, 2011.
 
fosinator said:
Jonesy said:
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Click to expand...

I asked a supervisor in the bank that question the other day, or more specifically "what happens if theres a bank run after that runs out" and got smirked at and a reply of 'that wont happen here.Its different here mate.'
Click to expand...

I'm only low level, but I'm astonished by how little the people above me know about banking/finance/economics. That bank manager obviously wasn't around in 2008/2009 when they were running out of $100 notes and had to order more from
The rba.
 
good post & thanks for all input.

The amount of fiat/ digital that I hold in a bank is about 10% of my wealth.

Many baskets..........

Many eggs.........
 
It turns out that the guarantee for smaller (under 1 million) deposits is due to expire / to be reviewed on October. The Guarantee for large deposits has been terminated.
 
You must log in or register to reply here.
Back
Top