Murray inquiry: Why the banks thank Murray

Banks have core capital of double the minimum requirement and recent raisings will boost this further... the recent sell off in banks stocks looks overdone.

Summary: APRA has until the end of next year to make sure our banks are “unquestionably strong” but the regulator hasn’t defined what “unquestionably strong” means. APRA has also said international comparisons shouldn’t be the only benchmark for measuring the strength of our banks. The banks have core capital of twice the minimum requirement, with recent capital raisings to boost that further, and score highly on measures such as asset quality and management quality.

Key take-out: Perhaps the banks are closer to being “unquestionably strong” than the market has currently priced.

Key beneficiaries: General investors. Category: Bank stocks.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles