Tuesday, 01 April 2025 12:25

Bagrie bags banks

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: Noted economist and self-promoter Cameron Bagrie took one look at KPMG's recently released Financial Institutions Performance Survey on banks and zeroes in one key number that suggests banks are so risk averse in this country that they are probably stifling growth and innovation.

That number is 0.08%, the ratio of impaired asset expense to average gross loans and advances.

Bagrie says this is incredible considering the economy is supposed to have experienced the worst economic climate since the global financial crisis.

"What risk have banks been taking?" he asks.

The low impairment charges and lift in banks' profitability tells a fundamentally different story relative to the economy's performance.

"We are not going to get an appetite to take risk in this economy - which is desperately needed - if the banking sector is not on board taking risk."

Featured

Horticulture exports hit $8.4B, surge toward $10B by 2029

A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.