Murray’s call for NAB, ANZ, CBA, and Westpac to have more capital is to ensure that taxpayers money was not used to prop up the major banks in future financial crises and to bring capital obligations of big banks into line with small lenders, The New Daily reported.
Murray, former boss of the Commonwealth Bank of Australia and inaugural head of the Future Fund, further debunked claims by the big banks that borrowers would be hit with higher interest rates on mortgages and said they are “exaggerated”.
An impact on home loan costs is around 0.1% if banks increase their capital requirements, the commissioned research stated.
Meanwhile, ANZ chief Mike Smith said “any increased capital requirements on major banks would have to be passed on to borrowers in higher interest charges or to shareholders in the form of lower dividends”.
Murray maintained his firm stand arguing higher capital requirements would create a level playing field between the major banks and smaller lenders.
Collections: Mortgage News