Investors rebel against banking policy
(18 January 2010 – Australia) Lending policies of major banks have caused a stir in the unlisted property trust industry as funds become frozen and incomes cut off.
The group, Light of Day, attempting to cause an uprise is complied of 250,000 investors who are concerned about the effects of bank lending policies on the value of their investments.
The movement to shine a light on self funded retirees’ investments in unlisted property trust is in an effort to encourage the government to undertake an intervention and launch a senate inquiry into bank polices that could cripple the industry.
The group has said that the current lending policies of some major banks, who have received the taxpayer guarantee, are endangering the stability of their own customers involved in the unlisted property trust through interest rate and fee gouging.
Spokesman for the group, Owen Lennie said that the group believes that there is not enough competition as smaller lenders withdraw leaving the big four to take advantage of this by lifting margins to levels not justified by the risk involved.
Mr Lennie also said that government leaders now need to make sure they are not blindsided by the issues around Australian banks, which they have guaranteed and allowed to take over smaller rivals, while the banks pressurise small but important sectors such a investors in the unlisted property sector.
Mr Lennie said the domino impact on the property market of Australian banks forcing sales on unlisted property trusts will ultimately flow on to lower valuations on a wide range of commercial property securing banks’ loans, increasing provisioning and reducing funds available for bank lending to small business.
The movement to shine a light on self funded retirees’ investments in unlisted property trust is in an effort to encourage the government to undertake an intervention and launch a senate inquiry into bank polices that could cripple the industry.
The group has said that the current lending policies of some major banks, who have received the taxpayer guarantee, are endangering the stability of their own customers involved in the unlisted property trust through interest rate and fee gouging.
Spokesman for the group, Owen Lennie said that the group believes that there is not enough competition as smaller lenders withdraw leaving the big four to take advantage of this by lifting margins to levels not justified by the risk involved.
Mr Lennie also said that government leaders now need to make sure they are not blindsided by the issues around Australian banks, which they have guaranteed and allowed to take over smaller rivals, while the banks pressurise small but important sectors such a investors in the unlisted property sector.
Mr Lennie said the domino impact on the property market of Australian banks forcing sales on unlisted property trusts will ultimately flow on to lower valuations on a wide range of commercial property securing banks’ loans, increasing provisioning and reducing funds available for bank lending to small business.
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