The cost of the Federal Government guarantee of Australia’s commercial banks

The too-big-to-fail (TBTF) status of Australia’s major banks creates an implicit Federal Government guarantee of the non-deposit liabilities of those banks, as noted in the interim report of the Murray Financial System Inquiry (FSI). The FSI also questions the adequacy of the capital held by the major banks, and whether Australia’s banks should not have … Continue reading The cost of the Federal Government guarantee of Australia’s commercial banks