Year of Pain: Low credit growth and high funding costs force banks to scrap 7000 jobs; Sourcing cheaper staff overseas is Australia's new growth industry
Tweet Topic Started: 14 Jan 2012, 09:03 AM (3,461 Views)
An Australian-based credit risk officer with National Australia Bank told The Saturday Age a ''reasonable wage'' was $60,000 a year, ranging up to $80,000 for someone with more experience.
So a "reasonable" wage in the banking sector is well below ABS average weekly earnings and even the more experienced people don't quite make the grade.
So a "reasonable" wage in the banking sector is well below ABS average weekly earnings and even the more experienced people don't quite make the grade.
For a credit risk officer, that would seem to be the case - although I don't know about "well below", in fact it looks like those jobs are just about on / around the average at $60k - $80k when the ABS measures the average full time wage as $69k. Also, those are not professional positions, nor anything particularly special in terms of the banking hierarchy.
Yes - but at a severely diminished rate. There is surely a major difference in the profitability of lenders when overall credit growth is travelling at around 3.5% pa as opposed to around 15% pa before the GFC.
Correction - there is a major difference in the growth of profitability of the banks. Lower credit growth doesn't mean lower profits, it means that the profit isn't growing as fast as it used to. Hence the record profits of most banks.
My name is based on a Seinfeld character, not on a belief of a housing bubble.
There is nothing at all wrong with banks raising rates to reflect the cost of funding as long as they also increase the rates on deposits. While I prefer cheaper mortgage rates, it is unfair to punish savers.
Correction - there is a major difference in the growth of profitability of the banks. Lower credit growth doesn't mean lower profits, it means that the profit isn't growing as fast as it used to. Hence the record profits of most banks.
Yes, that's what I said. We are still experiencing credit growth, not contraction. But the decelleration in the rate of growth is telling and the banks are indicating that they do not believe that current staffing levels will continue to be required, let alone expanded.
Will be moving all accounts to Commonwealth Bank as of this week - they are the only major bank not off shoring jobs.
I spoke to Westpac regarding this issue when the raised it several months ago and was contacted by their marketing several times to get my thoughts (who knows why, like it mattered).
Anyway - will be spreading this far and wide - one of the only things keeping western economies afloat is financial services, if these are off shored - then watch out.
JPM (I think, could be GS) have also started moving their operations off shore slashing thousands of Jobs from the US - rats are abandoning ship to Asia.
JPM (I think, could be GS) have also started moving their operations off shore slashing thousands of Jobs from the US - rats are abandoning ship to Asia.
I think you'll find all the large banks (with the notable exception of CBA) & financial institutions have moved significant numbers of jobs to Singapore and India.
WESTPAC is cutting hundreds of jobs, mostly in Sydney, as part of efforts to cut costs as lending slows. The nation's second biggest bank also escalated a program of sending jobs overseas to countries where costs are lower, opening the way for rival banks to follow suit.
The Finance Sector Union said yesterday that 560 mostly technology and administration jobs were to go at Westpac. It marked the latest round of job cuts to hit the sector this year. A spokeswoman for Westpac said the decision to cut jobs was difficult, but disputed the numbers circulated by the union. She said some staff affected would be moved to other areas of the bank.
''The real number of people directly affected is a lot less and is expected to be between 300 and 400,'' she said. ''We will minimise the impact on the people affected by reskilling or redeploying people and using natural attrition and reducing contractors.''
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