Original article by James Eyers
The Australian Financial Review – Page: 45 & 50 : 29-Mar-18
The Productivity Commission has received a joint submission from six regional banks in which they call for regulatory reforms to ensure that they remain competitive against larger rivals. Amongst other things, they have argued that the Federal Government’s implicit guarantee to bail out the "big four" in the event of a financial crisis gives them a competitive advantage when seeking funding via wholesale debt markets. The regional banks have also called for changes to the policy that requires them to have higher levels of capital for loans that have an equivalent risk.
AUSTRALIA. PRODUCTIVITY COMMISSION, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AMP BANK LIMITED, SUNCORP GROUP LIMITED – ASX SUN, ME BANK, MYSTATE LIMITED – ASX MYS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA