Australia’s banks are in a powerful place to keep off turbulent situations abroad, the monetary companies minister says.
Stephen Jones allayed fears of contagion from US and European banks following the collapse of Silicon Valley Bank and Credit Suisse, crediting stronger regulatory situations for stronger resilience within the home monetary market.
“While we’re not immune from the volatility in global financial markets, Australia’s banks are very well regulated, very well capitalised and have strong liquidity coverage,” he advised the Australian Financial Review Banking Summit on Tuesday.
Australian Banking Association chief govt Anna Bligh agreed, including that not like monetary sectors abroad, all Australian banks are topic to liquidity protection ratios, together with smaller gamers.
The banking sector stays “on high alert”, however at this stage contagion has been restricted to Europe and the US, she mentioned.
Financial markets rebounded within the US and Australia on Monday after First Citizens’ buy of Silicon Valley Bank’s property eased contagion fears.
Rising rates of interest have led to a credit score crunch for a number of regional banks within the US, sending deposit holders fleeing to bigger gamers seen as a safer wager.
But analysts have commented the danger of banking failure is decrease than in the course of the international monetary disaster as a result of deposits are successfully insured by governments.
Ms Bligh warned towards rising the key financial institution levy as a cost to fund the federal government’s deposit assure, arguing the popularity of the large 4 banks helps smaller gamers entry credit score on the worldwide market.
“It would be very disappointing to see the bank levy increased or any further hands in the pockets of banks,” she mentioned.
“The last thing we need for Australia’s banks is any further uncertainty.”
Mr Jones mentioned he had no intentions of accelerating the levy.
Meanwhile, the assistant treasurer mentioned the institution of a nationwide anti-scam centre will probably be on the core of a plan to make Australia the “destination of last resort for those who ply their misery in economic scams”.
The authorities’s technique contains limiting the quantity of buyer information that firms can retailer, rushing up identification of scams after they happen, bolstering security of transactions and serving to victims recuperate stolen ID extra shortly.
“Consumer protection is core economic reform,” Mr Jones mentioned.
The feedback come after shopper finance firm Latitude Group admitted on Monday 14 million Australian and New Zealand clients had information stolen from its techniques.
Source: www.perthnow.com.au
