A new bank account that offers a monthly lottery draw instead of competitive interest rates has come under fire for encouraging gambling.
The Bank of Queensland’s Save To Win account offers customers the chance to win cash prizes in a monthly lottery.
“With Save To Win, customers will earn a small interest rate on their savings. However some of the interest that our Save To Win Account holders would normally earn on a savings account goes into a cash prize pool,” the bank’s announcement states.
Bank of Queensland Ltd (BOQ) has agreed to buy the Australian and New Zealand operations of New York-based CIT Group, a lender to small and medium sized businesses.
BOQ will acquire CIT Group (Australia) Ltd and CIT Group (New Zealand) Ltd, together known as CIT ANZ, under a deal struck with CIT Group, with the transaction due to be finalised in the current quarter of the calendar year.
CIT ANZ provides finance for vendor equipment in the IT, office, motorcycle and power equipment markets.
BOQ said the acquisition represented about 15 per cent of its $3.4 billion equipment finance book.
Bank of Queensland Ltd (BOQ) has issued $1 billion of government guaranteed bonds before the window to sell guaranteed debt closes.
The bank will sell $450 million of fixed notes and a further $550 million of floating rate notes, both due on March 10, 2015, BOQ said in a statement on Monday.
The federal government announced last month it would end its wholesale funding guarantee for local institutions on March 24.
BOQ’s fixed notes will pay an annual interest rate of 5.75 per cent in semi-annual payments.
Bank of Queensland Ltd (BOQ) raised $850 million from an increased residential mortgage-backed securities (RMBS) offering to domestic investors, signalling the local RMBS market is returning to normal.
BOQ increased the size of the deal from $500 million after an initial over-subscription by investors for three tranches of notes from the bank’s 2010-1 REDS Trust series.
Twenty investors, including the Australian Office of Financial Management (AOFM), participated, with the AOFM taking $250 million worth of Class A Notes.
The Class A Notes were priced at 130 basis points over swap, while the Class AB Notes were priced at 175 basis points over swap, and the Class B Notes were privately placed, BOQ said in a statement on Tuesday.
Retail businesses across the country have lost thousands of dollars over the long weekend because a computer glitch left shoppers unable to use the Bank of Queensland’s (BOQ) Eftpos terminals.
BOQ’s Eftpos machines skipped ahead six years when the clock ticked over to January 1 and started date stamping January 2016.
BOQ staff have not been able find what caused the problem, but a temporary solution has been put in place to ease retailers’ frustrations.
The glitch cost businesses untold amounts as the Eftpos terminals read customers’ cards as having expired and refused their transactions.
Barry Jones, owner of Sharky’s T-shirt and souvenir store in Cairns, said his business was without an Eftpos machine for two days.
Bank of Queensland (BoQ) chief executive David Liddy says the Australian banking sector is moving closer to a “retail-style oligopoly”.
Mr Liddy says the increased level of competition achieved over the past 15 years, due to the arrival of foreign banks and smaller community and regional banks, has “basically gone in the past 18 months”.
This has left Australia with four major banks, “two big ones in Sydney and obviously two smaller ones in Melbourne”, he said referring to Westpac, Commonwealth Bank, NAB and ANZ.
“I’ve used the expression that we don’t want a retail-style oligopoly in banking and I think we are heading towards that,” Mr Liddy told the Sky News Business Channel on Sunday.
“The majors today are writing about 95 to 98 per cent of all new mortgages so we have an issue in terms of consumer choice.
A key Senate committee has given support to calls by regional banks and non-bank lenders for a government guarantee over residential mortgage backed securities (RMBS) and a review of the fees they pay for the wholesale funding guarantee.
The Senate economics reference committee said the securitised funding, used by these lenders to fund their balance sheets until late 2008, should be supported through its current difficulties via “some form” of a government guarantee.
It also said a careful design of a RMBS guarantee scheme was needed to avoid unintended consequences,
The committee tabled its report in the Senate on Thursday.
Litigation over Bank of Queensland’s (BOQ) involvement with the failed financier Storm Financial could substantially eat into the bank’s profit just as losses from bad debts peak.
BOQ revealed last Thursday it had a total lending exposure of $105 million from 319 Storm Financial clients – $20 million more than the bank’s interim 2009 cash profit.
However, BOQ has said the majority of the customers were repaying their loans and no margin loans were provided to Storm customers.
BOQ was caught off guard last week when the Australian Securities and Investments Commission (ASIC) placed the bank under investigation for matters relating to Storm one day after BOQ issued a denial over a regulatory probe.
Bank of Queensland Ltd (BOQ) says it is the subject of an investigation by the Australian Securities and Investments Commission (ASIC).
The regional bank said it was made aware that it was under investigation on Thursday, June 25, Brisbane-based BOQ said in a statement on Friday.
Shares in BOQ had gained 44 cents, or 5.2 per cent, to $8.90 as of 1532 AEST.
The news comes after the bank told the stock exchange on Thursday there is no evidence it had acted dishonestly in relation to clients of collapsed investment group Storm Financial.
Bank of Queensland Ltd (BoQ) says there is no evidence of dishonest practices by the bank in connection with Storm Financial clients.
BOQ sought on Thursday to clarify its position given what it said was “significant misinformation” in the media about its dealings with Storm Financial and Storm customer accounts.
Based on “the bank’s knowledge and enquiries to date”, it said, “there is no evidence of improper or dishonest practices or conduct by the bank in connection with Storm clients”.
BoQ said in a statement to the Australian stock exchange that there also was “no evidence that the bank has engaged in any misleading and deceptive conduct or unconscionable conduct in relation to its lending to Storm clients”.
Bank of Queensland Ltd (BoQ) has cut its standard variable rate on mortgages by 10 basis points, in line with other banks.
BoQ said its new standard variable rate on home loans would drop to 5.89 per cent from April 24.
But the bank was silent on interest rates applying to business loans, credit cards and other loan products.
BoQ’s move follows the Reserve Bank of Australia’s 25 basis point cash rate cut last Tuesday.
Bank of Queensland has announced it intends to cut 150 jobs.
The cuts, which make up about 10 per cent of the Bank of Queensland workforce, come as part of an internal review to streamline the business.
A Bank of Queensland spokeswoman said no employees in customer-serving roles in branches would be lost as part of the review.
Bank of Queensland Ltd (BoQ) will investigate growth opportunities, including takeovers and mergers, as the regional lender aims to take the places vacated in the market by St George and BankWest.
The bank on Thursday launched a formal review process, Project Pathways, to investigate ways to keep growing the business.
The bank also announced it would sell shares to existing shareholders at a discount, to raise as much as $100 million to strengthen its capital position and fund expansion.