Australians may have been forced to take some tough decisions during the global financial crisis, but a new survey suggests they got off lightly compared to other Asia Pacific countries.

The research by global financial services group, Citi, found that 42 per cent of Australians said they had to make some tough changes to their finances in the past year.

In comparison, the survey of 11 Asia Pacific countries found a greater number of respondents in Thailand (68 per cent) were forced to make changes, followed by the Philippines (65 per cent) and Indonesia (64 per cent).

Australians also were much less likely to have downgraded or cancelled their mobile, TV or internet package, or postponed a holiday, or put off buying a big ticket item last year than the other 10 countries.
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By Jill Fraser for Lending Central

Fact: Fraud cases in Australia have doubled over the past six months.
Fact: The epidemic is set to increase.
Fact: Banks and other financial institutions account for one third of fraud cases prosecuted nationally.
Fact: Almost half of all Australian companies have been hit by at least one incident of fraud.
Fact: Four out of 10 Aussie businesses experienced at least one incident of fraud during downturn - close to double the global average.
Fact: 37 per cent of reported frauds cost more than $1 million - double the global average.
Fact: Organisations underestimate their future fraud risks.
Fact: Fraud prevention should be a central component of ongoing operational risk management.

Two powerful reports outlining the ballooning incidence of fraud were released this week revealing that corporate criminals have been taking full advantage of the economic downturn.

The most sobering fact is that those in the know say the increased number of frauds identified over the past 12-18 months is just the tip of the iceberg and that its occurrence is on the rise.
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By Jill Fraser for Lending Central

Wanted: Team players and self-starters who possess problem solving and networking attributes.

After emerging relatively unscathed from the mortgage fatigue that has beset the industry for the past couple of years Smartline is embarking on a period of expansion.

Referring to 2009 as the year when the industry suffered “death by a thousand cuts” Smartline Managing Director, Chris Acret told Lending Central that serious soul searching prior to the Global Financial Crisis helped Smartline survive.

He has no doubt that commission cuts will reshape the industry over the next few years and admits to being quite “underwhelmed” by the meekness of the proposed regulations.

Acret spoke to Lending Central about Smartline’s philosophy of nurturing franchisees and establishing a positive, non-competitive culture within the team whilst offering rare insight into his personal satisfaction and frustrations.
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A survey has found the Global Financial Crisis is a distant memory for most Australians, who now believe the housing market is set to take off - again.

“A surprising 73% of respondents expect house prices to rise, which is the highest proportion for more than three years,” said Phil Naylor, CEO, Mortgage and Finance Association of Australia (MFAA).

The MFAA/Bankwest Home Finance Index canvassed the opinion of 850 people on a range of issues relating to the economy and housing market.

“Confidence in the housing market is not only pre-GFC - it’s back where it was during the height of the housing boom,” Mr Naylor said.

“But there are still some clouds on the horizon, with recent interest rate increases negatively impacting households,” Mr Naylor said.
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By Jill Fraser for Lending Central

For the first time since the start of the Global Financial Crisis (GFC) small to medium businesses are starting to show signs of healthy improvement.

This week’s release of the NAB SME Quarterly Survey (September 2009) reveals that business conditions for SMEs (small to medium enterprises) have improved significantly, reaching positive territory for the first time since the GFC began in September 2008.

For the September quarter, large SMEs with an annual turnover between $5m - $10m recorded the strongest improvement and were the best performing at 6 index points, up from -13. Small
SMEs ($2 - $3M) recorded an improvement from -7 to 4 index points, with mid-sized SMEs ($3 - $5M) increasing from -6 to 3 index points.

The main driver of sales this quarter has been a sharp improvement in customer confidence/demand, and it represents the first positive outcome since September 2008. Positive impacts from seasonal and competitive factors have also helped.
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The “Big Four” Banks now hold 73.8% of outstanding mortgages in Australia, up from 56.8% two years ago in August 2007, for Australians the effective dawn of the Global Financial Crisis.

Had the two mergers approved in 2008 - the Westpac takeover of St George and the Commonwealth Bank takeover of Bankwest - not proceeded, the market share of the big four would currently stand at 62.9%.

“Australia’s major banks have shown remarkable stability over the last two years”, said Tony Crossley, head of mortgages and insurance at CoreData-brandmanagement.

“This stability is a significant factor in the mortgage lending growth of big four banks relative to their smaller competitors”.
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The world’s leading economies have set a new course aimed at restructuring financial markets and financial institutions to ensure there can never be another global financial crisis.

The leaders also agreed to “spare no effort” to reach an agreement at the United Nations climate change conference in Copenhagen in December.

The third G20 summit since the global financial crisis unfolded a year ago concluded with a long statement from leaders that committed to continue economic stimulus spending until signs of “durable” economic recovery emerged.

The Pittsburgh summit concluded that measures including trillions of dollars in stimulus spending put in place at the London G20 in April had softened the impact of the global recession and even hastened a recovery.
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Only the Chinese are more satisfied with their government’s response to the global recession than Australians are with the way Labor has handled the crisis.

Nearly 70 per cent of Australian respondents to a poll, conducted for the BBC World Service, were satisfied with the Rudd government response.

That was the second-highest rating amongst 20 nations, but well behind the 88 per cent backing Chinese respondents gave their government.

The average satisfaction rating among the 22,000 respondents worldwide was 44 per cent, the Program of International Policy Attitudes and GlobeScan poll found.

“It is clear that citizens are still not seeing the kind of economic leadership they think is needed from their national government,” GlobeScan chairman Doug Miller said in releasing the report.
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A year ago, many people would probably have said a GFC was a recipe for deep-fried chicken.

Now, though, the Global Financial Crisis is part of the vernacular and understood by most, at least to some vague extent, like global warming and low-carb diets.

It was a year ago that the crisis entered its most dangerous phase, but it was by no means the start.

Cracks were beginning to appear in the edifice of high-risk lending that had been encouraged by the ultra-low interest rates employed to cushion the impact of the dot com share price crash in early 2000.

By early 2007 housing prices in the US were a year past their peak, the trickle of institutional failures was becoming a steady current and some big names were being dragged under.
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A strong banking system helped cushion Australia from the worst of the global financial crisis, the Reserve Bank (RBA) says.

RBA assistant governor (financial system) Malcolm Edey said the domestic financial system had been “more resilient” than its overseas counterparts during the crisis as its profits were robust and therefore could keep lending.

“This is not always a popular point to make, but it’s a great advantage during an economic downturn to have a banking system that remains profitable and is able to continue lending,” Dr Edey told the Financial System Developments in Australia Forum in Sydney on Wednesday.

“In 2008, the major banks in the US and Europe moved sharply into loss, though some have returned to profit this year.
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