Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

FSI to boost bank stability: ME

The federal government’s response to the Financial System Inquiry will improve stability across the nation’s banking system, according to industry super fund-owned bank ME.

Advertisement
Advertisement

PROMOTED FEATURES


>Jamie McPhee, chief executive of ME, welcomed the move by the government, saying it will progress bank capital levels and competition while complimenting the processes already initiated by APRA.

“We commend Financial System Inquiry head, David Murray, and the other panel members, on their thoughtful, considered analysis of the Australian financial system,” he said.

“We are particularly pleased to see the government will take steps to reduce any implicit government guarantee and the perception that some banks are too big to fail, which has had the effect of giving the major banks significant competitive advantages in the cost of funding.”

Mr McPhee said although the recommendation surrounding comprehensive credit reporting was not accepted, it would not come as a surprise to see it implemented at a later date.

“While we accept the government does not yet see the need to legislate for mandatory participation in comprehensive credit reporting, this may still be required as comprehensive data sharing is less likely to occur in highly concentrated banking markets such as Australia. The number of participants sharing comprehensive credit data is critical to the success of the regime,” he said.

“ME is committed to working closely with the government and agencies in the implementation and further consideration of the Murray review.”

FSI to boost bank stability: ME
mortgagebusiness

Latest News

The federal government has unveiled a plan to overhaul responsible lending laws by shifting from a “lender beware” model to a “borrowe...

Housing affordability pressures have intensified for first home buyers in five of Australia’s major capitals, who now require more time to...

ASIC has directed fund managers to do more to remain “true to label” after finding that funds labelled as cash had assets other than cas...

FROM THE WEB
podcast

LATEST PODCAST: How lenders are viewing the property price outlook

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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