Economy

The prudential regulator has confirmed that it is temporarily suspending the issuance of new licenses in response to the “economic uncertainty created by COVID-19”.

The central bank has revealed that it has purchased over $36 billion in government bonds as part of its quantitative easing program to support the domestic economy.

Going “cold turkey” following a “massive fiscal binge” will “rarely end happily”, ING Economics has said in response to coronavirus-induced stimulus provided by government authorities

The state government is being urged to save the commercial sector by allowing landlords a 12-month hiatus from land taxes.

The banking industry has agreed on a common approach to COVID-19 loan repayment deferrals, stating that these will not impact a borrower’s credit rating.

The ratings agency is forecasting a material rise in defaults off the back of the economic shock from the coronavirus outbreak.

With lower interest rates off the table, the Reserve Bank has been urged to ramp up its quantitative easing strategy.

The market fallout of the banning of on-site auctions has continued, with 45 per cent of auctions withdrawn from sale last week, according to CoreLogic.

Expectations of an increase in margin pressures and a “significant deterioration” in asset quality have prompted Moody’s to downgrade its outlook for the Australian banking sector.

The central bank of New Zealand has frozen the distribution of dividends on ordinary shares across all banks in the New Zealand market, affecting the big four banks.