Questions to help we amatures... Anybody,

[#1]

If rates increase and all else same, does banks normally go up or down?When oil goes up,Sasol seem to go up?If the rand weakens against dollar,what effect normally on bank shares?(SA Banks).What i am trying very basically to work out,what in simple terms will be factors that normally will push up asa,sbk bank shares .Sorry for "stupid" questions but only one way to learn.

[555]

Kim, I don't think you should compare banks to Sasol. We are all forced to buy petrol whether we like it or not. Life goes on, no matter what the petrol price = Sasol scores. Banks on the other hand seem to suffer as fewer people take loans, and defaults go up. OMO

[#3]

Ya then there is the new credit act,americans are not able to pay loans back etc.I am just trying to get avery simplistic rule for banks but i think like u say there are a lot of factors invoved

[Preston]

Factors 1. M3 money supply data...Is there an growth in the amount of money in circulation by Bank. If so, high interest high degree of bad debt 2. Interest rate enviroment.. (High interest rate ,high bad debts) 3. Look at the cost to debt ratio of bank as contained in their finacial statement and then determine if this will increase. 4. Pressure the price of petrol will put on the inflation outlook and the mere fact Bra Tito could increase interest rate. 5. Other factor... politic and economic factors i,e eskom rate increase will affect point 4. Jacob Zuma will affect point 4.