Daily Bulletin

The Conversation

  • Written by Jenni Henderson, Editor, Business and Economy, The Conversation

The total of superannuation assets in Australia is a staggering A$2 trillion and contributions to this are rising. But despite this significant influence, a new study shows the effects of superannuation on banking and finance mostly balance out.

A researcher who was presenting the study, Robert Waschik from the Centre of Policy Studies in Melbourne, says the study found super funds hold more offshore assets than most households, so any increase in the guarantee for superannuation would increase demand for foreign assets leading to some depreciation in the Australian dollar. However this could be offset by the Reserve Bank raising interest rates, he notes.

Another aspect of the study tried to see whether the common gripe of bankers that an increase in superannuation could reduce the banks’ access to capital (through bank customers) could actually happen. The modelling found the banks could access more money through a few other measures, the study showed, including equity and bonds.

Waschik says the modelling points to potential threats to financial stability through an increase in the debt to equity and debt to income ratios of households, though these should be balanced out by a deepening of the market for corporate bonds in banking and strengthening of the current accounts balance.

Authors: Jenni Henderson, Editor, Business and Economy, The Conversation

Read more http://theconversation.com/business-briefing-what-super-is-doing-to-banking-and-finance-70043

Writers Wanted

One quarter of Australian 11-12 year olds don't have the literacy and numeracy skills they need


Step-by-Step Process of Filing Bankruptcy in Georgia


The Conversation


Prime Minister Interview with Kieran Gilbert, Sky News

KIERAN GILBERT: Kieran Gilbert here with you and the Prime Minister joins me. Prime Minister, thanks so much for your time.  PRIME MINISTER: G'day Kieran.  GILBERT: An assumption a vaccine is ...

Daily Bulletin - avatar Daily Bulletin

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Business News

AppDynamics Solves Visibility Gap Between Traditional Infrastructure and Cloud Environments

New Full Stack Observability Platform, Integration With Cisco Intersight Workload Optimizer and Cloud Native Visualisation Features Provide Cross Domain Insights and Analytics of Business Perfor...

Hotwire Global - avatar Hotwire Global

Why Your Small Business Should Bulk Buy Hand Sanitiser

As a small business owner, employee and customer safety is at the very top of your priority list. From risk assessments to health and safety officers, appropriate signage and proper briefing...

News Co - avatar News Co

How Phone Number Search In Sydney Can Help Your Business

To run a successful business, keeping track of your company and competitors are the major factors. With a lot of tools, available businesses have options to stay current. One way in which busine...

News Co - avatar News Co

News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion