Finance Insider

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It’s rare these days that regulators are criticized for being over cautious however that is exactly the criticism being faced by the Reserve Bank of Australia who says that its own rules for access to the credit card system are so restrictive even the RBA itself is denied access. Back in 2004 the central bank rescinded the right of MasterCard and Visa to decide who would be allowed to issue and receive their cards. The RBA argued that the system had to be open to any ''authorised deposit-taking institution'' that is under the supervision of the Australian Prudential and Regulation Authority (APRA). The problem the central bank has is not that it does not qualify since it provides banking services to the Federal Government and its agencies. However it is finding that it cannot issue Visa and MasterCards in the same way other financial institutions can. The central bank would love to be able to issue these cards because it would mean that ordinary individuals could pay ASIC feed or taxes simply by quoting their card number.

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Whilst consumer sentiment may be low, Australia continues to be ranked the happiest nation in the world amongst developed economies for the third consecutive year. The Better Life Index is compiled by the Organisation for Economic Cooperation and Development (OECD) which cited continued strength in the overall economy as the reason.

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money-au.com.au

Consumer confidence in Australia fell to its lowest level in over 17 months in response to both record low interest rates and a budget deficit according to the results of a survey.. The Westpac Melbourne Institute sentiment index in May fell 7 per cent during May, its largest decline since December 2011 and the first time the index level which is currently 97.6 breached the all important 100 mark which suggests that there are more pessimists than optimists.

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The big four Australian banks are being tipped to earn a combined $13 billion between them during the first half which would be an all time record after all the banks failed to pass on official cuts in interest rates and sacked thousands of staff members. Many banking analysts say the industry is currently in a “sweet spot” and is benefitting from profit growth that is in large part the product of reduced bad debt provisions declining costs and higher share prices as investors seek out higher yields.

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money-au.com.au

The Westpac-Melbourne Institute Leading Index suggests the economy is on the rebound as commodity and equity prices rally. The index grew by 4.2 per cent in February up from 2.7 per cent recorded in September and much higher than the long term trend rate of 2.8 per cent. The index estimates the pace of economic activity for the next one to three quarters. Matthew Hassan senior economist at Westpac says the results suggest economic momentum has clearly lifted since June 2012.

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