The big banks prepare for diminishing returns

As the deadline for the Financial System Inquiry looms, the banks are bracing for changes to their prudential framework that will decrease their profits and increase the costs passed on to consumers.

It would appear apparent from the inquiry’s interim report and Murray’s subsequent public musings that the panel hasn’t been convinced that the majors hold sufficient capital, even with the additional one per cent capital surcharge they will face in 2016 because of their domestic systemically important (too big to fail) status.


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