Yes. Traditionally no, NIM's are considered to normally rise...

Yes. Traditionally no, NIM's are considered to normally rise with rising interest interest rates. But as the emergency funding by the RBA the low rate of funding enjoyed by the banks in recent years will rise faster as they have to return to wholesale funding rates. Customers are switching to fixed rates fast so the duration risks of the banks interest rates exposure are changing rapidly.

That's why the CBA CEO was calling for a rate rise. The longer the RBA keeps low rates the longer customers have opportunity to switch. The banks have all said NIM will remain under pressure in the second half. They are literally telling investors bad news through grins of higher profits and punters are not listening.

Credit growth has peaked.

Its never has straight one way effects. The RBA wants to wait until they see wage inflation, as they know a couple of rate rises could stifle the housing market - a third of the Aussie economy is housing - and meanwhile the banks want them to raise to give them a little more leeway on NIM.

The Aussie banks rely on international whole sale funding to a degree. That's climbing fast:




If significant wage inflation doesn't come in Australia and the RBA has to raise rates due to price inflation that is at 30 year highs the world over, Aussie households will struggle.

You can't pump massive amounts of cash into economies with supply constraints and expect it to not only solve the issues, but also it not to have massive asset and price inflation effects. The hangover is coming....now Australia and the rest of the world has to start paying the debt with real employment and real wages lower than ever....