Thing is the share price rose disconnected from the news which can be a couple of reasons.
1. A lot people are seeing volatility and seeing banks in the long term as a better capital play.
2. There is something brewing we are not privy to.
3. The relaxed lending laws give the banks greater impetus to make more cash out of its current clientelle.
I think all of it is related to the announcement but a large disproportionate response to what was generally decent news for lending.
What the lending law change might result in, is a more relaxed approach to lending money to people who could default, on the back of COVID where previously they would not have been in those positions. The previous laws being unwound in this environment allows people to kick their problems down the road to a future where COVID is less disastrous, which means less defaulting, which means better scope for the majority of people seeking hardship.
Its not actually bad news even though it seems a bit nuts when you think it through. The one part I have struggled with since May is seeing a bullish market on the back of no real news. Some noise about vaccines, and the stocks go up. Riots and businesses closing. Stocks go up. Trillion dollar support packages (read a temporary sugar hit) stocks go up. Good results seem to be sell off on news. Its very strange.
NAB Price at posting:
$18.29 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)