Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 10-Apr-19
A report from S&P Global Ratings says the federal government is likely to remain "highly supportive" of Australia’s major banks in the event of a crisis. However, the ratings agency adds that there is a one-in-three chance that the government will change its position to "supportive" over the next two years. Any change in the government’s level of support for the major banks would most likely prompt their credit ratings to be downgraded, which in turn would increase their funding costs.
S&P GLOBAL RATINGS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COUNCIL OF FINANCIAL REGULATORS