View from Wall Street: Fading attractions of Aussie bank stocks

For US investors in local banks the thrill is gone ...and it won't help 2016 share prices.

Summary: Analysts believe Australia’s big banks are facing the most challenging period for earnings growth, as the weakening dollar prompts foreign investors to sell stocks and capital ratio requirement changes loom. Dividend cuts are also on the table should earnings fall and current payout levels become unsustainable.

Key take out: If capital ratio requirements are raised, as expected, to 10.5 per cent, the big four will face a capital shortfall of $31 billion.

Key beneficiaries: General investors. Category: Shares.

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