Hi Joe!
Great episode as always.
Is the financial economy healthy? 1:22:33
The question above made me think about a conversation I had with someone who works for CBA that told me that a lot of people are moving their money from other Banks to CBA with the reason being that most people see CBA more ‘safe’ relatively than the other big 4 banks. Perhaps this can be seen as a perception of most people have an expectation that CBA is too big to fail. I do not have a data on this but would be very interesting to see if this is true. This effect of people putting their savings into CBA has let CBA fulfil its capital reserve obligations without raising more money in contrast to the other big banks. This, among other things, has been priced in the share price of CBA falling less than the other four.
One Comment
Miguel
Hi Joe!
Great episode as always.
Is the financial economy healthy? 1:22:33
The question above made me think about a conversation I had with someone who works for CBA that told me that a lot of people are moving their money from other Banks to CBA with the reason being that most people see CBA more ‘safe’ relatively than the other big 4 banks. Perhaps this can be seen as a perception of most people have an expectation that CBA is too big to fail. I do not have a data on this but would be very interesting to see if this is true. This effect of people putting their savings into CBA has let CBA fulfil its capital reserve obligations without raising more money in contrast to the other big banks. This, among other things, has been priced in the share price of CBA falling less than the other four.