US experts: Aussie bank capital “way low”

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By Leith van Onselen

Two key experts within the US financial system have blasted the thin capitalisation levels of Australia’s banks, adding further weight to the Financial System Inquiry’s call that Australian bank capital levels be made “unquestionably strong”. From Adam Creighton at The Australian:

Thomas Hoenig, the vice-chairman of US bank regulator the Federal Deposit Insurance Corporation, told The Australian the capital level of Australia’s big four banks was “way low”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.