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Ontario Canada is becoming the new California, and not in a good way

Colin Henderson

Canada continues to be held in high regard throughout the ongoing crisis but the devil lies in the details.  Ontario which represents about 40% of Canadian GDP is beginning to look like Nero … fiddling while Rome burns.  Even at the Canada level the savings rate is going in the opposite direction of western economies, and adding to debt, ie not saving.  This perplexing environment is hard for Canadian Banks to formulate a credible strategy around. The Boeckh Investment Letter While Canada has deservedly had a good ride in recent years particularly through the global recession, due to strong Federal … Continue reading Ontario Canada is becoming the new California, and not in a good way

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UK Bank mortgage volumes down

Colin Henderson

An interesting stat that reflects a new normal when people are consolidating and de-levering.  However the percentage decrease of 18.9% since July 2009 is not so dramatic as the headline in the Telegraph suggests. Banks approve just 1,000 mortgages a day | Daily Telegraph It is down from 34,575 mortgages the previous month and the situation has got significantly worse compared with last year, with levels down from 41,353 mortgages in July 2009.  The latest figure is half the amount of mortgages approved before the credit crisis hit. Technorati Tags: UK,mortgages,consumer confidence Continue reading UK Bank mortgage volumes down

Payments

ING DIRECT Frees Canadians from Bank Fees with THRiVE ChequingTM, a No-Fee Daily Chequing Account that actually pays interest

Colin Henderson

Exciting news from ING this morning.  I knew this was coming but not the details till now.  For more details go to http://www.your185.ca/ which is a very cool URL relative to this product. I have been preaching for some time that bank product design since 2007 is not really attacking the core aspect of post crisis consumer need which I would characterise as features that support a deleveraging environment, where people saving and paying down debt is the defining average consumer strategy.  This new product from ING supports that strategy with a full featured yet cheap chequing facility. ING Direct … Continue reading ING DIRECT Frees Canadians from Bank Fees with THRiVE ChequingTM, a No-Fee Daily Chequing Account that actually pays interest

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Lots of contradictions in the economy, and banks’ response is to promote deposit accounts

Colin Henderson

What an interesting and contradictory set of headlines.  We really are an an economic crossroads with no roadmap.  The only change I observe with Banks at least in Canada is that they have directed their advertising towards deposit accounts and Investment Certificates.  Interesting times. Financial Times US banks ease lending standards Geithner calls for housing finance reform US housing starts make modest rebound US house mortgage arrears mount US pressure grows to extend tax cuts for rich US Housing US yields US builder slump deepens in August Call for careful overhaul of US mortgage lending Fed needs firepower to zap … Continue reading Lots of contradictions in the economy, and banks’ response is to promote deposit accounts

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eBanking – free checking from BofA

Colin Henderson

BofA have come out with a pure non branch checking account that has the right price, i.e. free.  Everything is done via online or ATM.  This type of account is gaining momentum.  Its not a game changer but with a no fee price tag, it will change behaviours of some customers. Bank of America eBanking Ideal if you do most of your banking online and at the ATM, instead of with a teller. Learn more about eBanking>> Monthly fee waived when: Deposits and withdrawals are made electronically or at our ATMs AND You choose online paperless statements through Online Banking … Continue reading eBanking – free checking from BofA

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A status report on the banking crisis 3 years on and evidence of banks as financial utilities

Colin Henderson

This headline caught my attention this morning. Three Years on, Is the Financial Crisis Over? | Yahoo Finance Three years ago to the day, BNP Paribas, the French banking giant, suspended redemptions on three funds, marking the beginning of the credit crunch. Sure enough it was 9th August, 2007 I posted on it and noted that the US sub prime problem was going international and pointing to deeper rooted problems with banks. Relevance to Bankwatch: Two sets of recent events underscore the heightened risks Banks are taking to improve profits.  Speculative investment in commodity markets amongst a few Banks earlier … Continue reading A status report on the banking crisis 3 years on and evidence of banks as financial utilities

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Banks reliant on trading revenue will suffer

Colin Henderson

Banks whose stock value is partly predicated on trading profits will come under serious pressure in the next while. US banks braced for slump in profits | ft.com Trading activity picked up a little in recent days after the release of European banks’ “stress tests”. However, deepening fears of a permanent end to the trading boom that supported financial groups’ earnings after the financial crisis are prompting some banks to consider laying off traders. “July was a miserable month for trading,” one senior banker said. “If August and September don’t rebound sharply, banks will be forced to cut jobs.” The … Continue reading Banks reliant on trading revenue will suffer