Australian banks - safe?

Hi everyone,

What do you guys think?

I listened to a podcast over the weekend on the Standard & Poor website, according to which, NAB has a negative rating and ANZ is also one to watch (not in a good way).

I also noticed that all the ratings on the website were from Feb 2007, or earlier, which does not take into account the recent turmoil.

I have all my savings sitting in BankWest at the moment, and am not sure what to think. Is anyone familiar with their new parent company, Lloyds?

Any light that can be shed on this would be much appreciated

disco lemon

 

Disco lemon mate

Have you got sleepless nights too??

I personaly wouldn't worry about our banks.

To answer your 2nd question, all I know is that LLoyds is 1 of UK's biggest banks and they must have a lot of cash because they recently spent £12bn to take over the Halifax Bank of Scotland

Cheers

 

Thanks for the info Bill

Off to have a good night's sleep.

 

"I personaly wouldn't worry about our banks"

I wouldn’t be so sure.

 

DL, are you talking about investing in the banks or leaving your money sitting in a bank account?

If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?

 

"If the latter, does anyone know what the situation is if/when a bank folds, i.e, what happens to your savings?"

Some info is here:
Frozen Bank Accounts Legal Information Letter
FDIC Insurance Limits: What If My Bank Fails? Make Sure Your Money Is Covered » My Money Blog
» How To Protect Your Bank Account With Full FDIC Insurance Coverage

 

I believe you just become a creditor to the failed bank.. sux really.. cash deposits should be government guaranteed. You give the bank money, get nothing from it, and take on the business risk.

Anyway, I owe the bank far more money than they have of mine, so if the bank does fail, I don't stand to lose anything!

 

Thanks everyone for your thoughts, and Tropo, for the link.

Smarty pants, I'm referring to the latter as well.

 

CRC

Sorry to bring you bad news but you will probably find that they will sell your property pocket the money and they could give you a few cent /$ for your savings.

That's if you get any at all...

Trying to take to court a failed business won't get you anywhere either.
CBA seems like the safest bank at the moment

Cheers

 

ANZ and NAB have been priced as riskier in the market.

Slide 10 gives an idea of where St George Bank fits with the number of doubtful debts being around 0.18% as at March 2008. http://www.stgeorge.com.au/resources/sgb/downloads/about_us/Credit_Suisse_AIC_2008.pdf

Cheers,

Dan

PS This is general information and not advice to buy, sell or hold any investments.

 

Yes ST George seems like very low risk as well

Cheers

 

Are Aussie Banks Safe

Hello
My first post on this excellent site, regarding our banks, are our savings say insured against loss or insolvency for what ever reason, like banks in the UK were a depositer is covered up to 35 thousand pounds per banking group, does the Aussie banking system cover our deposits our should I say, does the government???
Everybody on this site has seen the UK Government nationalize Northern Rock and now Bradford & Bingley because of there debt levels,
Just watching what is going on overseas and curious do we similar Insurances or Government backing, somebody here on the forum should know?


Cheers Jules

 

That's great! cause my loan is with the CBA anyway..

 

unfortunately the government doesn't insure savings.. I used to believe that banks were insured but credit unions and building societies were not.. but I was surprised to learn that your money isn't safe in a bank either.

essentially you take on the business risk of the bank, yet get no return from them.

 

Thanks crc-error
For the quick response
Looks like were on our own, so the Aussie banks could still be involed with the credit crisis overseas, and you the saver lose all the money???
Thanks
Jules

 

you may as well buy the bank, at least you will share in its profits! if the bank karks it, then both investors and depositors loose anyway..

 

Jules

I am sure that in the unlikely scenario where an Oz bank is about to go under
our Gov will intervene and bail it out.

The US, UK, Germany, Belgium have done this recently with some banks or mortgage providers.

Such action should not come to us as a surprise and it's VERY UNLIKELY that we will need to go down this path because the majority of our banks are not exposed much to the US and they are still making billions...

Cheers

 

so isn't it better to buy the shares?

Always buy your straw hats in the Winter - Bernard Baruch

 

Thanks BV and crc
I think the poor folk in the UK would have been shocked to learn that it was happening to them, and luckily the Government stepped in
They to believed that there banks were making squillions !!!! or they were led to believe so
Maybe a good time to buy some financials???
Cheers Jules

 

long term why not?