Powered by MOMENTUM MEDIA
subscribe to our newsletter

Smaller banks call for govt to hold firm on reform

The Customer Owned Banking Association is calling on the federal government to pursue the Financial System Inquiry’s recommendation against a deposit levy.

The group claims the government is already sending signals that it is walking away from the FSI’s reform blueprint and has urged it to reconsider.

“We are seeing an apparent willingness to reject the FSI’s recommendation against a deposit levy and suggestions that implementation of the capital recommendations will be delayed,” COBA chief executive Mark Degotardi said.

“The suggestion that a deposit levy may be needed because of delays in strengthening capital settings flies in the face of recommendations one and two of the FSI.

“These recommendations on bank capital are the top-priority recommendations of the FSI, and the government should be sending a clear message to APRA to get on with implementing them.”

Advertisement
Advertisement

PROMOTED CONTENT


Mr Degotardi noted the deposit levy will create risks to the stability of, and competition in, the Australian market.

“A deposit levy is bad news for competition in banking as it hits the major banks’ smaller competitors much harder than it hits the majors,” he said.

“The deposit levy is a mosquito bite for the four major banks, but it is a python squeeze for the smaller players in the banking market.”

Smaller banks call for govt to hold firm on reform
mortgagebusiness

Latest News

Australian buy now, pay later giant Afterpay is set to be acquired by a San Francisco payments fintech, in a deal worth approximately $39 bi...

There has been sustained robust growth in home lending driven by strong owner-occupied lending and faster growth in investor housing, accord...

The prudential regulator has launched a week-long consultation on its regulatory approach for banks offering temporary financial assistance ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.