POWERED BY MOMENTUM MEDIA
Levy on major banks should be higher
Any levy on the major banks and Macquarie should be applied by the Commonwealth Government and at a higher rate, ME Bank believes.
The industry superannuation fund owned bank said it agreed with the South Australian Government that the banks that benefited from an implicit guarantee were accruing a benefit materially greater than the current levy, and therefore should pay more.
ME Bank chief executive, Jamie McPhee, said: “The major banks receive a 20 to 30 basis point benefit from Australian taxpayers for being ‘too big to fail’, giving them significant competitive advantages over smaller banks, making Australia’s banking system more concentrated, increasing risk, eroding competition, and reducing customer choice”.
“A highly competitive banking industry over the long-term is in the long-term interests of Australian consumers as is an unquestionably strong banking system, both principles for which ME will continue to advocate,” he said.
Recommended for you
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Typical response from a Union based pretend bank. The major banks have an extensive and costly network and need to comply with capital adequacy requirements so ME bank comments only serve to reduce the major banks to the lowest common denominator. This would be very damaging to Australia's relatively high standing and security in the banking sector which shielded our country from the devestating effects of the GFC.
Add new comment