Published May 10, 2017 | View complete press releases list |
Date: May 10, 2017
Categories: Mobile banking, riskregulation
Keywords: Commonwealth Bank Of Australia, Westpac, ANZ, National Australia Bank, Macquarie Group
Australia's biggest banks are likely to pass on the bulk of a surprise A$6.2 billion (S$6.43 billion) tax to their customers in the form of higher interest rates rather than accept an earnings cut, fund managers and analysts said on Wednesday.
The government on Tuesday announced a six basis points levy on bank liabilities in a bid to raise about A$1.5 billion a year from the five biggest banks - Commonwealth Bank of Australia , Westpac Banking Corp, Australia and New Zealand Banking Group, National Australia Bank and Macquarie Group - over the next four years.
The measure, which also aims to help smaller rivals compete with the banking oligopoly, comes into effect July 1 and was introduced by a centre-right government that has been defending the banks against calls for a wide-ranging inquiry into their practices.
Morgan Stanley analysts said the levy would reduce the annual earnings of the big five banks by an average of 4.5 per cent. Westpac said the financial impact of the levy was not immediately clear while representatives of CBA and NAB declined to comment. ANZ and Macquarie did not respond immediately to requests for comment.
Re-disseminated by The Asian Banker
