Will regulation hit the banks?

While the big banks have fallen of late as proposed regulation causes jitters in the market, their earnings may be more resilient than you think.

Summary: Australia’s banks are under pressure from potential regulatory changes at the moment. Out of the proposals, using loan to valuation ratios appears to be ruled out, while lifting capital requirements and adjusting the risk weighting attached to investor loans look more likely. But the suggested changes don't necessarily mean loan growth will slow down much when considering the investor-friendly environment of rising house prices and low funding costs.

{{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