The Capital Bite

National Australia Bank (NAB) reported a 15% drop in mortgage applications over the last quarter, coinciding with the Reserve Bank of Australia's (RBA) decision to rule out saving the property market. RBA chief economist Sarah Hunter stated that the bank does not mechanically respond to falling house prices, but considers their impact on the economy and monetary policy. The RBA has a dual mandate of price stability through inflation between 2-3% and full employment. Last month's hold rate followed three interest rate hikes in 2026, reversing the three interest rate cuts of 2025. Headline inflation came in at 3.8%, while the trimmed mean was 3.6% for the 12 months until June 30.

National Australia Bank (NAB) has reported that home loan applications have plummeted by 15% in the past quarter, attributed to Labor's tax changes, rising interest rates, and economic worries caused by the conflict in the Middle East. This downturn is not solely due to the Reserve Bank of Australia's decision to increase interest rates three times since the start of the year. NAB disclosed this information as Reserve Bank of Australia chief economist Sarah Hunter noted that factors beyond the central bank's control have contributed to the weakening housing market.

National Australia Bank has reported a 15% drop in mortgage applications over the past three months, attributing this decline to Labor's tax changes and rising interest rates caused by Reserve Bank of Australia decisions since January. This downturn is part of a broader weakening housing market, according to Reserve Bank of Australia chief economist Sarah Hunter. The bank disclosed these figures as the central bank continues to navigate economic concerns stemming from the conflict in the Middle East.

Australian home loan applications have plummeted by 15% in the June quarter compared to the March quarter, according to National Australia Bank (NAB), with investor loans down 35% since early February in dollar terms. This decline is attributed to the Reserve Bank's interest rate rises and the federal budget tax policy, which has spooked prospective home borrowers. NAB joined other big four banks in cutting interest rates on fixed-rate investor and owner-occupier loans. First home buyers have also stayed away, with their mortgage applications down 23% from peak to now. The decline is expected to worsen in the near term.

ASIC has exposed a widespread issue across eight major Australian banks, where hundreds of thousands of homeowners have been overpaying interest charges on their mortgages due to systemic failures in managing mortgage offset accounts. The investigation found that 55% of detected failures involved an offset account being formally opened but never linked to the customer's mortgage, while another 22% involved accounts that customers requested but were never established. This has resulted in AUD 55 million in compensation paid to affected borrowers, with national offset balances hitting a record high of AUD 349.1 billion. The issue was detected in 204,000 unique home loans processed between March and August 2025 across Commonwealth Bank, Westpac, ANZ, Macquarie Bank, and other institutions.

The headline 'He moved markets': Tributes flow for Westpac legend refers to the passing of a prominent figure in Australian banking, someone who had a significant impact on the industry through their work or leadership at Westpac. This individual's contributions and legacy are being recognized by colleagues, peers, and even regulators.

Bill Evans, Westpac's former chief economist, has died at the age of 76 after a battle with cancer. He joined the bank in 1991 and spent 32 years as its chief economist, building a reputation for making astute interest rate forecasts that could move markets.

Australia has supplanted China as the dominant lender and infrastructure investor across the Pacific, providing around 37% of all development spending in the region in 2024, according to the Lowy Institute's Pacific Aid Map. This shift means Australia will face growing pressure to deliver major infrastructure effectively without saddling Pacific nations with unsustainable debt. Much of Australia's new infrastructure funding has been funnelled through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), which has committed over $1 billion in loans and more than $850 million in grants since 2019. The Lowy Institute estimates the government has signed new loan agreements worth $US2.4 billion ($3.44 billion) since 2021. Australia's emergence as the key lender in the region has not completely sidelined Beijing, with Chinese construction firms still dominating many contests for major World Bank and ADB projects.

ANZ will create a new form of deposit later this year called a 'tokenised deposit' to allow large companies to move funds across borders instantly. This is part of ANZ's efforts to adopt new forms of digital money emerging globally. The tokenised deposit will be issued on ANZ's network, making it the only Australian bank among 17 major international players ready to do so. According to Swift, a secure messaging service used by banks for cross-border transactions, this move positions ANZ as a leader in digital banking. Large companies will benefit from instant fund transfers, and ANZ is set to become one of the first banks globally to offer this service.

Four new banks - Teachers Mutual Bank Limited, Health Professionals Bank, UniBank, and Firefighter Mutual Bank - have joined the Australian government's shared equity scheme, which allows buyers to get into the property market with just a 2 per cent deposit. This brings the total number of participating lenders to four, in addition to Commonwealth Bank and Bank Australia. Since its launch eight months ago, over 3,000 applications have been received, with more than 1,000 places filled. The scheme allows borrowers to sign on with the government as a co-owner, giving them more lending options. Younger customers tend to apply through Bank Australia, which has allowed external brokers to offer the scheme.

ANZ has initiated proceedings to sell the frozen assets of WA drug kingpin, who is currently being investigated by law enforcement agencies. The bank aims to recover its outstanding loan of $2.5 million from the individual's frozen accounts. ANZ has applied to the Supreme Court for an order to realise the security over the assets. The move follows a long-standing investigation into the individual's alleged involvement in serious crime. The court is expected to consider the application soon.

The headline 'Chief bastard': Ex-ANZ boss Shayne Elliott spills all suggests a scathing public statement or interview by Shayne Elliott, the former CEO of ANZ Bank, where he uses strong language to describe someone in a high-profile banking context. Given his background and industry connections, it's plausible that Elliott is speaking out against a specific individual or policy within the Australian banking sector. This could be related to regulatory issues, corporate governance, or personal conflicts.

ANZ has joined NAB in slashing credit card rewards ahead of the Reserve Bank of Australia's (RBA) looming surcharge ban on October 1. ANZ has cut sign-up perks on its Frequent Flyer Black and Platinum cards, including reducing Qantas points from 130,000 to 80,000 and eliminating a $200 cashback offer. The changes are effective immediately for new customers. NAB made similar cuts to its white-label card brands in August. Experts predict most banks will follow suit in the coming months.

NAB has cut its short-term fixed home loan rates by up to 0.20 percentage points, bringing its lowest rate to 6.34 per cent for two years, ahead of the Reserve Bank of Australia's (RBA) August meeting. This move is part of a trend, with 21 lenders cutting at least one fixed rate since June 1, while only 11 have hiked rates. NAB economists believe the cash rate has peaked or is very close to it and expect the next RBA move will be down. The bank's decision comes after RBA governor Michele Bullock warned that further interest rate hikes may be necessary if inflation data warrants it. ANZ, Macquarie, and ING have also cut rates by up to 0.50 per cent, 0.10 per cent, and 0.20 per cent respectively.