Australia’s low unemployment rate should allow National Australia Bank Ltd. to maintain asset quality and prevent any spike in bad-debt levels... 1 in 4 Australians turn to parents for emergency money...
National Australia says low jobless rate prevents bad-debt spike
(Bloomberg) -- Australia’s low unemployment rate should allow National Australia Bank Ltd. to maintain asset quality and prevent any spike in bad-debt levels, according to the bank’s chief executive officer.
NAB’s write-offs remain low despite the financial problems experienced by Australian mining companies and other firms facing debt pressures, Andrew Thorburn said at a media conference in Sydney Tuesday.
“Employment is an indicator I look at to determine the overall stress,” Thorburn said. “Unemployment is a key driver of defaults. If the economy stays where it is, asset quality should remain quite sound.“
The health of the local economy is key for the lender, which under Thorburn has shed units in the U.K. and U.S. and focused on the Australian and New Zealand markets. Australia’s economy grew at the fastest pace in four years in the first quarter, underpinned by an export boom. The unemployment rate has remained below 6 percent since February.
1 in 4 Australians turn to parents for emergency money
28% of Australians said they would borrow money from friends and family to help them through a tough financial situation, a new survey by finder.com.au reveals.
Over 50% of Aussies turned to credit cards to cover shortfall and 15% would take out a short-term loan.
Bessie Hassan, money expert at finder.com.au, says, “Those borrowers who aren’t lucky enough to receive financial assistance from parents or friends could be up for high-interest charges if they need to access credit, such as a personal loan or a credit card– particularly if they don’t make repayments in full and on time.
“For those who are already in deficit, these interest charges could become unmanageable. Australians need to make a conscious effort to increase their savings and build a contingency buffer of funds so that they have a plan B when things go wrong,” she says.
(Bloomberg) -- Australia’s low unemployment rate should allow National Australia Bank Ltd. to maintain asset quality and prevent any spike in bad-debt levels, according to the bank’s chief executive officer.
NAB’s write-offs remain low despite the financial problems experienced by Australian mining companies and other firms facing debt pressures, Andrew Thorburn said at a media conference in Sydney Tuesday.
“Employment is an indicator I look at to determine the overall stress,” Thorburn said. “Unemployment is a key driver of defaults. If the economy stays where it is, asset quality should remain quite sound.“
The health of the local economy is key for the lender, which under Thorburn has shed units in the U.K. and U.S. and focused on the Australian and New Zealand markets. Australia’s economy grew at the fastest pace in four years in the first quarter, underpinned by an export boom. The unemployment rate has remained below 6 percent since February.
1 in 4 Australians turn to parents for emergency money
28% of Australians said they would borrow money from friends and family to help them through a tough financial situation, a new survey by finder.com.au reveals.
Over 50% of Aussies turned to credit cards to cover shortfall and 15% would take out a short-term loan.
Bessie Hassan, money expert at finder.com.au, says, “Those borrowers who aren’t lucky enough to receive financial assistance from parents or friends could be up for high-interest charges if they need to access credit, such as a personal loan or a credit card– particularly if they don’t make repayments in full and on time.
“For those who are already in deficit, these interest charges could become unmanageable. Australians need to make a conscious effort to increase their savings and build a contingency buffer of funds so that they have a plan B when things go wrong,” she says.
