26 Jul Myth, muck and mystery of bank pricing

IN BRIEF; It is too simplistic to look at the RBA cash rate for a fair comparison with bank cost of funds. This article considers the composition of bank funds and looks at the complexities surrounding funding over the past few years.

“Myth, muck and mystery of bank pricing” is an extensive article written by our very own Ian Robinson of Robinson Sewell Partners for Holmes Sackett’s “On Farm” magazine.

You will discover that what bank debt funding costs at a retail level are not necessarily reflective of the RBA cash rate. This is due to the different sources of bank funding. Bank debt funding costs cannot be controlled by the borrower.

Download the full article below and look out for our future articles which address the things within the control of the borrower amongst a range of other important topics.