NAB wants capital rules relaxed

The head of the National Australia Bank, John Stewart, has warned that there could be a credit crunch in Australia if banks are not allowed to raise more capital. Mr Stewart told an Australia-Israel Chamber of Commerce lunch yesterday that if more and more comes onto the balance sheets and further capital raisings are not allowed there will be a credit crunch. “We’ve got to get away from this (fear of capital) that’s gripping the market. What I think banks should be raising capital for is….corporate Australia. So when the other markets close, the banks can keep lending and they can lend profitably,” he said.

Source: The Australian