NAB Target Price $34 by June 2020, page-65

JC - maybe too narrow a point of view. Main driver of the recent falls is coming from overseas. The market went down yesterday - across the board and not just the banks. We will get another big hit today as the DOW is currently down 500 points this morning with another hour of trade to go. There is a threat of recession in the US and that is the market place that affects us. I would add that the current state of Australia's economy - and the points you raised - have been around for a while AND we have seen a rise in the NAB SP from $26.50 to 29.92 over the last three months. The current retrace mirrored what has happened on the DOW.

NAB is no different than the other banks in only partially passing on the rate cut. The old rule is that banks require a 2% margin between what they charge borrowers and the cost of their borrowings - 60% of the funding used to come from bank deposits - and the counter to lower interest rates is low deposit rates. You wouldn't sell bread for less than it cost to make so why would you charge less for what you loan out than the cost of funding the loans? Banks are commercial entities and not charities.

Anyway, easy to make a prediction of a big hit to the NAB SP today - that will continue while there is large corrections in the DOW.