The prudential watchdog wants to boost bank leverage and raise the risks depositors and taxpayers face in the name of ameliorating its regulatory complexity.
Under a plan that was never publicly canvassed, Australia’s banking regulator is trying to shut down the $40 billion listed hybrid market; substantially raise bank leverage and risks for depositors (and taxpayers); and make all smaller banks non-compliant with global best-practice regulations.
This bureaucratic overreach will destroy a huge franked income sector beloved by self-managed super fund investors and retirees.
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Christopher Joye is a portfolio manager with Coolabah Capital, which invests in securities, including those discussed in his column. Connect with Christopher on Twitter.
