Are Australian Banks Too Big? Kevin Davis Professor of Finance, - - PowerPoint PPT Presentation

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Jan 14, 2024 261 likes •365 views

Are Australian Banks Too Big? Kevin Davis Professor of Finance, University of Melbourne Research Director, Australian Centre for Financial Studies & Professor, Monash University Bank Deposits/GDP: High Income Countries 2015 400 350

SLIDE 1

Are Australian Banks Too Big?

Kevin Davis

Professor of Finance, University of Melbourne Research Director, Australian Centre for Financial Studies & Professor, Monash University

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50 100 150 200 250 300 350 400

Deposits/GDP

Country

Bank Deposits/GDP: High Income Countries 2015

Australia

Hong Kong Luxembourg Japan Cyprus

Source: World Bank Global Financial Database (series GFFDD.OI.O2)

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50 100 150 200 250 300 ATG ABW AUS AUT BHS BHR BEL BRN CHL HRV CYP CZE DNK EST FIN FRA DEU GRC HKG HUN ISL ISR ITA JPN KOR KWT LVA LTU LUX MAC MLT NLD NOR OMN POL PRT QAT SAU SYC SGP SVK SVN ESP KNA SWE CHE TTO ARE GBR USA URY

Bank Assets/GDP (%): High Income Countries 2015

Cyprus Denmark Hong Kong Switzerland Japan Australia Singapore

Source: World Bank Global Financial Database (series GFFDD.DI.O2)

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0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Finance&Insurance: Share of GDP

24.7

Australia

Source: https://stats.oecd.org/index.aspx?queryid=60702 (data = B1GVK/B1_GE),

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10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100

5 BANK 3 BANK BANK CONCENTRATION RATIOS: 2015 HIGH INCOME COUNTRIES

Australia Source: World Bank Global Financial Database (Series GFDD.OI.O1, GFD.OI.O6)

http://www.worldbank.org/en/publication/gfdr/data/global-financial-development-database

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0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40

01-Jän-14 20-Jul-14 05-Feb-15 24-Aug-15 11-Mär-16 27-Sep-16

Major Bank Stock Prices 2014-16 (Index: 2 Jan 2014 =1)

ANZ CBA NAB WBC

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0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

22.02.11 22.02.12 22.02.13 22.02.14 22.02.15 22.02.16

Major Banks: Implied Volatilities

CBA Implied ETO Vol ANZ Implied ETO Vol WBC Implied ETO Vol NAB Implied ETO Vol

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0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40%

22.01.15 22.04.15 22.07.15 22.10.15 22.01.16 22.04.16 22.07.16 22.10.16 22.01.17

Major Banks: Bond Yields (margin to Govt rate)

CBA senior bonds margin (7.25% May 2020 maturity, issued 2010) ANZ senior bond margin (ANZ 3.765% JUL 2019) WBC senior bonds margin (7.25% Feb 2020 maturity, issued 2010) NAB senior bond margin (NAB 7.25% March 2018)

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0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

17.04.13 17.10.13 17.04.14 17.10.14 17.04.15 17.10.15 17.04.16 17.10.16

Major Banks: "Bail-in" Securities Yields

CBAPD Margin to first call date ANZPC Margin to first call date WBCPC Margin to first call date NABPA Margin to first call date