Case Study
FUNDING COSTS
Funding Cost:
Key Learnings
- Diversified funding sources reduce the impact of debt market volatility
2. Deposit competition increases as wholesale funding costs rise
3. Higher credit ratings provides cheaper funding, but are less efficient
Funding Cost Increases
6 May 2018
Shayne Elliott – ANZ CEO
Responses to funding cost pressures
Out-of-Cycle Rate Rises
29 August 2018
Brian Hartzer – Westpac Former CEO
Explanation for out-of-cycle rate rises
Withholding
Out-of-Cycle Rate Rises
5 November 2018
Andrew Thorburn – Former NAB CEO
Explanation for not increasing rates along with peers
Wholesale Funding Pressures & Deposits
9 January 2019
Ross Greenwood – Channel 9 Finance Editor
Movements in deposit markets post funding cost increases
Summary
- Diversified funding sources reduce the impact of debt market volatility
2. Deposit competition increases as wholesale funding costs rise
3. Higher credit ratings provides cheaper funding, but are less efficient
