Westpac joins growing chorus predicting rates cuts
By Brian Deer, News24
Posted Friday April 6 2016 10:23am CDT
Finance Minister Mathias Cormann has been warned to pay closer attention to the rate cuts predicted this week as Australia’s biggest banks fear that they’ll be hit with severe losses in the coming weeks.
The Greens have welcomed the Federal Government’s announcement of a $5.3 billion bank levy to help fund mortgage-backed securities.
But the Greens fear the government is looking to further weaken rules over whether banks can be sold off.
«We have not been reassured this morning that the $5.3 billion will provide adequate protection for the banks that are under pressure,» Greens finance spokeswoman Penny Wright said.
«The Greens have been concerned that the Federal Government could take the view that they can allow Australia’s most toxic banks to continue trading after these market changes take place.»
The Greens have been lobbying the Government on how it can further tighten regulation on the banking industry, but the Treasury says it will work with the industry.
The Government’s decision comes before the first quarnatyasastra.comter of this year, which can see an increasing number of new money lenders start to issue credit cards.
The bank levy is aimed at creating capital to absorb changes in the Australian economy, while easing pressure on the banks over their high levels of losses.
The Government also committed to $500 million to improve conditions for foreign investors in Australia’s banks.
The measures come as the banks brace for another global economic shock.
The Australian Bureau of Statistics has revealed there are around 5 million Australians living overseas, up over 4 million from 2012.
According to the Bank of America Merrill Lynch, the number of Australians with home ownership grew by 9.5 per cent to 42,742 in the March quarter.
However, according to the Australian National University’s research, only 7 per cent of Australian households have been ful더킹카지노ly secured, while 30.3 per cent are in low- to moderate-low-level housing.
The new report, entitled «Laws to regulate the capital market: What’s behind this slow move», warns there are also growing concerns about a slowdown in Australia’s economy.
The report notes that Australia’s household wealth index has dropped in the last three months from a high in July.
And just as the housing market has cooled, the impact of the impact of a global downturn in the global economy, such as falling oil prices and sluggish export deman