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
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
