Case Study

FUNDING COSTS

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Funding Cost:
Key Learnings

  1. 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

  1. 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