The federal government's endorsement of new requirements for banks to boost capital as insurance against a financial crisis has given the green light for other banks to follow Westpac and increase interest rates, the industry believes.
Prime Minister Malcolm Turnbull said he saw no reason why any bank had to increase rates to meet higher capital levels, but added that implementing the inquiry's recommendations would make one of the world's strongest financial systems safer.
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Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com
James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau. Connect with Clancy on Twitter.
