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20/07/21
12:32
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Originally posted by StefanF
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You are getting a number of banking theories completely crossed. Savings accounts are a type of funding for the bank. Obviously they need to fund loans somehow, whether that's through deposits or wholesale funding.
The other concept that you're talking about is risk-weighted assets (RWA) that banks have to hold capital against. The riskier the loans, the higher the risk-weighted asset and the higher the capital the banks have to hold against these loans. E.g. Residential mortgage might be 40% RWA, while a business loan might be $100%.
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No don't think I am!
As money has to kept back so customers can have their cash when they need it as we know most saving accounts are everyday use accounts.
Has APT been suckered by WBC into taking on some of its loss making business?
Suspect they have but time will tell.
Sentiment neutral Not Held.