Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Is This Why CBA (ASX:CBA) And Westpac (ASX:WBC) Shares Are On the Rise?

Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking Corp (ASX:WBC) shares are both up this morning.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares are both up this morning.

Commonwealth Bank and Westpac are Australia’s two largest banks ahead of Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

Bank APRA lobbying boosts share prices

According to the Australian Financial Review, as reported by leading journalist Jonathan Shapiro, the major banks are trying to convince APRA (the banking regulator) not to force them to raise $75 billion through Tier II bonds.

The big banks are claiming the global demand for Tier II bonds wouldn’t be enough for them to raise 7% of their risk-weighted assets, which would be between $67 billion and $83 billion over four years — or triple the $25 billion sold over the past four years.

Tier II bank debt is part of a requirement which says banks have to hold capital to protect depositors and senior bondholders against losses. This is so that taxpayers don’t have to bail-out the banks in the future.

Are CBA and Westpac buys today?

Both CBA and Westpac are more reliant on Australia’s housing market than the other two big banks, which could be a worry as the property prices in Sydney and Melbourne are falling right now.

Banks are facing a number of headwinds, including hundreds of millions of dollars of remediation costs from the Royal Commission. Our analyst recently questioned if NAB’s 8% dividend is worth the risk.

I think the big banks have little growth prospects at the moment, whereas there are some ASX shares, like the shares revealed in the free report below, that have excellent growth plans.

2 ASX rapid growth shares to consider

[ls_content_block id=”14947″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content