Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Lee Doyle

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: RBA fast becoming the ultimate Aussie battler

Posted by on in Reserve Bank of Australia
  • Font size: Larger Smaller
  • Hits: 2418
  • 1 Comment
  • Print


Date April 10, 2013


Michael West

Business columnist


It’s an Aussie battler’s worst nightmare. You’ve got a macking big loan with the bank but the value of the family home is falling. Times are tough. You’re veering towards the dreaded ‘negative equity’ territory,  that is, being underwater on your mortgage, or owing more to the bank than your home is actually worth.

As it turns out the Reserve Bank of Australia is having a ‘negative equity’ nightmare of its own. Just a three per cent fall in the value of its assets and the RBA is underwater. Good thing the RBA has a sugar daddy, Joe Hockey.

To explain, Treasurer Wayne Swan blithely snipped a $500 million dividend from the Reserve Bank’s wilting cash reserves last year. The bank had just made its first profit in three years and the government commandeered almost half of it. It had to make the budget look good somehow.

Governments do this from time to time. Since the central bank was formed in the 1960s though, the money has never flowed the other way; from the government into the RBA that is.

That may change. According to a story by economist Christopher Joye featured on page six of the Australian Financial Review today, Shadow Treasurer Joe Hockey is planning to top up the Reserve Bank’s emergency capital ‘buffer’ to the tune of $4 billion.

Even before the Treasurer took his half a billion dollar ‘Don’t-mind-if-I-do’ dividend - something RBA governor Glenn Stevens was definitely not pleased about - the Reserve’s cash reserves were under serious pressure.

The rising $A had cut $5 billion from its capital base in 2009 and 2010. As the local currency rallied against its peers, the value of all its foreign currency assets fell. Now its ‘reserve fund’ or capital buffer hovers at just $1.95 billion.

Another rise in the $A, and Australia’s central bank could find itself in ‘negative equity’.

To deploy the analogy of the Aussie battler, this is akin to a fall in the value of the family home to just above the value of their loan from the bank. We are talking here about a battler with a three per cent deposit and a home loan worth 97 per cent of their home. That is where the Reserve Bank stands today, remarkably.

Read more:

Last modified on
Rate this blog entry:


  • doyla66
    doyla66 Saturday, 20 April 2013

    Isn't that ironic :D
    And a Bank, no less.
    One of the golden egg layers is at risk of being sold up by their creditors?!
    What next?
    It's fine and dandy to go round blithely converting government services to quasi businesses with the magic wand of law and the fairy dust of corporate protective measures.
    It's totally another to actually understand the difference between profit and loss, capital and cashflow and how to effectively manage debt.
    Of course the rules that apply to the rest of us don't apply to RBA and other "essential service".
    Once out of debt I know I can survive without a Bank so it's not an "essential service" IMHO.
    Is the RBA US registered as well? If so US Corporation Laws may apply too.
    Under US Laws different insolvency/bankruptcy laws could apply and processes that no one has had the smarts legislate as useful to Australians to date.
    In Australia a company in this sort of trouble might have some hand holding from ASIC and friends to ensure they're compliant and viable.
    But if they fail and fall over the process is swift and deadly with vultures aplenty picnicking on the carcass at great cost to small creditors and investors. There are no winners - bring in the clean up operation: autopsy, liquidators, undertakers, morticians. What a waste! It's barbaric, counter intuitive, destructive, punitive and shows our ignorance and immaturity as a so-called civilised country. It's high time Australia revised its old hat and draconian Bankruptcy laws and processes in public interest for both corporate health and individual survival.
    In the meantime, would someone please put in a call to Financial Counselling Australia to get some down to earth financial advice and emotional support for the poor RBA and their staff?

Leave your comment

Guest Friday, 14 August 2020