Commonwealth Bank shares fell sharply after housing tax reforms and weaker quarterly earnings raised concerns around mortgage growth and banking sector exposure to the property market. The sell-off spread across major lenders as investors reacted to slowing home loan activity, rising provisions and broader economic risks linked to global uncertainty.
The Reserve Bank of Australia enacted its cash rate to 4.10 per cent in March during its most divided vote in memory, a 5-4 split. The minutes released Tuesday suggest the board can’t figure out with much confidence what the future path for rates will look like as everything hinges on how the Middle East conflict plays out. With oil averaging close to $US100 ($140)a barrel, the RBA says inflation could peak at 5 per cent in the June quarter instead of 3.7 per cent. Markets are pricing a 60 per cent chance of another hike in May, with rates potentially reaching 4.75 per cent by the end of the year.
The Reserve Bank of Australia has decided to ban card surcharges for Eftpos, Mastercard and Visa payments from 1 October 2026. The move will take $1.6 billion a year from Australians and free up further savings of $900 million for small businesses through lower interchange fees, the combined annual savings being $2.5 billion in total. The RBA discovered that surcharging is no longer functional, three quarters of Australians want it scrapped. American Express is exempt from the ban. The RBA will also hold consultations in mid-2026 about expanding reforms to include mobile wallets and buy-now-pay-later services.
The Reserve Bank of Australia has announced a new technological sandbox to explore tokenised finance and programmable money. Following Project Acacia, the bank is focusing on wholesale digital currency to improve efficiency in large-scale transactions. Assistant Governor Brad Jones says the shift could save billions annually by reducing costs and risks. The initiative marks a major step toward modernising Australia’s financial system and improving cross-border payments in the digital age.
As the first step towards it, Sembcorp Industries has mandated lead banks to arrange an A$2 bn loan for its Australian expansion, which would eventually be used to fund this overall plan. This financing is specifically for the acquisition of Alinta Energy’s East Coast assets as part of a major step in Sembcorp’s global growth strategy. Related: Sembcorp can accelerate its transition towards sustainable power while gaining a stronger international presence thanks to the deal backed by lenders including DBS and ANZ. This whopping loan guarantees the company has the cash necessary to spearhead Australia’s transition to a carbon-neutral, and more energy-efficient, grid.
By 2030, Australia’s pension industry will have swelled to A$5.7 trillion, about $4 trillion US dollars, while the number of funds percolating in it will dwindle from 75 to almost 45 because of mergers, a Mercer study predicts. Until 2035 only 30 funds will remain, then by 2050 just 20 mega funds controlling an estimated A$15 trillion dollars. Australia already boasts the world’s fourth-largest pension pool and is growing faster than any other major market. It is poised to pass the U.K. and Canada, making it the second largest in the world by the early 2030s.
It concluded an extended process that had begun with UBS’s 2008 purchase of failed Swiss bank PaineWebber, which needed a national banking license to engage in certain activities. The Swiss bank can now transform UBS Bank USA into a fully licensed national bank, bringing checking accounts, savings accounts and mortgages along with more extensive payment services. The move is key to CEO Sergio Ermotti’s efforts to expand UBS’s U.S. wealth management business and go head-to-head with American competitors. For current clients, nothing will change in the immediate term. UBS filed its application in October and received conditional approval in January 2026
On Tuesday, the Reserve Bank of Australia raised interest rates to 4.1 per cent in a bid to combat surging inflation. The Australian dollar fell despite the hike, because board members were divided on the decision. And the war in Iran is continuing to raise oil prices and marring global currency markets. Investors are piling into the U.S. dollar as a haven while waiting to see how the conflict affects global trade, and watching for decisions from other major central banks this week.
Private credit market stress is impacting Wall Street, with banks cutting exposure and funds limiting withdrawals as investor caution rises.
Australian Government, CBA & Major Banks Move Urgently To Stave Off A $1 Billion Mortgage Fraud Scandal Investigations found that criminal syndicates had used breakthrough artificial intelligence to fabricate financial documents for luxury home loans. In response, authorities are rolling out a new financial crime strategy that features biometric checks and tighter regulations for mortgage brokers. The steps are intended to restore confidence in the banking system and prevent high-risk debt from destabilising the national economy in 2026.
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