The stability of any bank, any financial institution for that matter, all depends on the quality of its loan book.
But outsiders can never look inside a bank's loan book.
What we can do, however, is look at the regulated and audited financial statements.
There are a wide range of key metrics that can help us understand the stability and quality of a bank's operations.
This page allows you to inspect and compare most of the important ones.
The data used in this tool is based primarily on that supplied by the RBNZ, from their Dashboard tool. Where we have added additional metrics or information that is marked with an *.
11 Comments
Nice, I do like the selection options, table design & more thorough bank list (than what often is cut down in a few in other sites, not enough for even the current NZ environment). The new RBNZ tool will do nicely as well.
The ANZs impaired housing loans look out of whack. Anyone have any ideas?
I assume the above are risk weighted amounts, would be useful to have the absolute capital ratio to demonstrate the impact of the risk weightings on the actual capital ratio, after all it is the actual ratio that supports any losses.
While I believe this tool is entirely useful to those who understand the banking sector, and hence what this information represents, i struggle to see how the average man on the street will a) be able to decipher the information when choosing a bank, and b) how it will improve competition.
Let's face it the first time a decision is made to open a bank account is when a person is at school. That decision is often guided or dictated by parents who may or may not understand banking. Plus this information tends to read for me that there is less risk with the bigger banks, and therefore effectively discourages competition. Plus as we see from the Royal Commission it gives no indication of what shenanigans are going on in the background. What i think is needed to sit along side this is a commentary in plain english.
murray86,
You have studied the Dashboard and will know that in it can be found remarks like this; "As a source of information for the public to better understand and compare banks' businesses and risks" and this; "By improving the ability of the public to understand and act on information about banks' financial strengths and risk profiles".
Thus,the Dashboard is meant to allow the public-the ordinary man and woman in the street-to use the metrics to make informed decisions on their deposits. Bollocks. For a start,very few know of the Dashboard's existence and even fewer could make the slightest sense of it.
I gave the RB extensive feedback-as requested-and received a brief acknowledgement. If I was being very cynical,I would think that it represents a figleaf to allow the Bank-in the event of a bank failure-to say,but we gave them a tool and it's not our fault if they didn't use it. Too cynical? Perhaps.
Quite interesting to see the figures for lending for LVRs over 80% and over 90%
Just curious on peoples thoughts on borrowing via mortgages from ICBC or CCB (special rates) since they are consistently the lowest. I understand credit ratings, etc are important for deposits, but surely with borrowing its simply the lowest rate that wins? Anyone had any experience with mortgages from any of the Asian/non big 5 banks?
are these figures the nims? im a newbie. cheers
ANZ and others. Asset quality housing loans -> Loans past 90days but not impaired. I wonder if this means putting a dollar into your account after 90days gets put into this basket. Seems easy for under reporting of loans that will shortly become impaired.
It would be useful if there was a category for non-performing loans with the banks, which might be a leading indicator for approaching problems.
I just saw March 23 data will be added May 31st, thats quite a delay?