Banks to pass on regulation costs to customers
ANZ Bank chief executive Mike Smith has warned the prudential regulator against “fixing something that's not broken”.
Australian Prudential Regulation Authority chairman John Laker said on Wednesday that local banks would not be spared from tighter standards, despite weathering the financial crisis better than overseas counterparts.
“It would be curious indeed for our financial institutions to promote their strengths to the marketplace while at the same time shying away from global benchmarks; investors will not allow that to happen,” Mr Laker said.
“There can be no unilateral declaration of independence from global reform.”
Last month, APRA proposed a significant enhancement to minimum bank liquidity levels to ensure banks can survive a crisis for 30 days instead of the current minimum of five days.
ANZ chief financial officer Peter Marriott said this represented an additional cost that would inevitably be passed on to customers.
Source: The Australian