Bad Debts May Rise in Australia

The video discusses concerns over corporate loans, particularly in the mining, agriculture, and dairy sectors. It highlights the rise in bad debt charges, expected to reach $5.3 billion by 2018, and the decline in profit growth. Despite these challenges, bank shares are rising, presenting a buying opportunity. The video also covers the increased cost of insuring debt and regulatory actions against banks for market manipulation, with ASIC expanding its probe to include major banks.

Which sectors are primarily affected by concerns over corporate loans?

• Technology and Healthcare

• Mining, Agriculture, and Dairy

• Retail and Manufacturing

• Finance and Real Estate

What is the expected trend for profit growth until 2018?

• Fluctuate unpredictably

• Remain stable

• Increase by 5% annually

• Decline by 4.5% annually

Despite rising costs, why are bank shares considered a good buying opportunity?

• They have been historically cheap

• They have lost value over the past year

• They are expected to decline further

• They are unaffected by market trends

What legal action is the financial regulator taking against the banks?

• Criminal charges for fraud

• Civil matter for market manipulation

• Tax evasion investigation

• Merger and acquisition violations

What is the equivalent of the manipulated market rate mentioned in the investigation?

• Libor

• Federal Funds Rate

• Discount Rate

• Prime Rate