Japanese Banks eye of Australia

Japanese Banks eye of Australia

au.news.yahoo.com

Some of Japan's strongest banks are planning an assault on our mortgage market.

Financial commentator, Tony Boyd says the Australian Banks have had it too good for too long. And now, the Japanese banks want a slice of the action.

"The thing about the Japanese banks that gives them this competitive advantage to be able to offer home loans in Australia is their low cost of funding. The average deposit rate in Japan at the moment is 0.1%. It's just incredible, it's one tenth of 1%."

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This is insanely awesome! These banks have been planning this move into Australia for ages and the 'invasion' can come as early as this year! I reckon that all the big Aussie banks are freaking out now. With Japan coming in with considerably lower loans that can potentially bury the current greedy system that Australian banks are running on.

au.news.yahoo.com
(visit the link for the full news article)

Let's hope they really shake up the big 4 major banks here !

This could be really bad news for a lot of people.
You'll borrow some cheap Japanese money, but it will be tied to the currency exchange. Good now with a strong dollar, but if the dollar drops - say, with the inevitable slowdown in China emasculating our current account - our dollar will drop measurably.
And your debt - in Yen - will increase immeasurably.
Check the paperwork - is the loan in Yen or Au$.
Japan isn't immune from the market panics at the moment; but they've been rock bottom for ages. They can't fall much further.
Everywhere else in the world has almost zero interest rates; of course they'd be interested in a housing market with 6% or more interest rates.
The high interest rates are the only thing holding the Australian banks together; they are up to their eyeballs in mortgage debt in a bubble market; the rates allow them to access foreign funds cheaply.
We may have low Government debt, but private debt is off the scale.
I'm from Aus, have you noticed how State Governments are cutting big time? 10% staff cut for public service in Vic.
Do they know?
When we blow we will blow big time.
Borrowing from a Japanese bank would just multiply your debt by the currency fall. And the dollar will fall.
We run a current account deficit even with the mining boom; not a trade account - the only one the media report.
Have mentioned this in other threads.
Stay away; if it seems too good to be true; it probably is.

Buy some dried food, some seeds and a shottie.

About time! We need far greater competition in this country with banks.