Bank lending and regulation

Essay by jgrsunUniversity, Master'sA+, May 2008

download word file, 12 pages 0.0

The Bendigo Bank Group of companies includes the retail bank and the wealth management division comprising trustee company and funds manager Sandhurst Trustees, financial planners Bendigo Investment Services and Worley Securities, and debenture company Victorian Securities. A wholly owned subsidiary, National Mortgage Market Corporation is a mortgage originator and loan portfolio manager. Bendigo also participates in joint venture companies Elders Rural Bank (farm banking), with Futuris Corporation, and Tasmanian Banking Services with Tasmanian Perpetual Trustees Limited.

Therefore, Bendigo Bank and its subsidiaries offer a wide range of financial services, including commercial mortgages and unsecured loans, investment products, insurance, superannuation, trustee services and foreign exchange services.

1.2 SizeBendigo Bank is a publicly-listed company on the Australian Stock Exchange and is owned by more than 48,000 primarily small shareholders. The under management assets of Bendigo Bank is more than $16 billion and market capitalization is around $1.4 billion dollars. It also has one million customers and declared a 2004/2005 after-tax profit of $90.4

million. However compare to other major banks in Australia, Bendigo Bank still a quite small bank.

1.3 AgeBendigo was Australia's oldest, and Victoria's biggest, building society. The origin of Bendigo Bank was Bendigo Permanent Land and Building Society which was born in Bendigo goldfield in 1858.

It was not until the 1970s the Bendigo Building Society began to expand its business throughout regional and metropolitan Victoria. The following three decades have seen the Bendigo grow quickly, and the growth peaked in conversion to a Bank on 1 July, 1995.

Nowadays, the Bendigo Bank products and services are available through more than 500 outlets Australia-wide, including more than 150 company owned branches and 160-odd community owned Community Bank® branches of Bendigo Bank.

1.4 Nature of depositsTable 1Deposit2005($m)2004($m)RetailBranch network9,092.48,126.4Treasury sourced792.7765.4WholesaleDomestic772.4599.1Offshore- EMTN and ECP1,067.0454.2- Cross currency swap75.843.5In 2005, the Branch network of...