The big lie in APRA’s stress test results

Advertisement

Let’s close one case of deception and move to the next.

The case for closure, I am pleased to say, is that APRA has finally dealt the death knell to the misleading reporting of the Majors, aka MegaBank, as to their “real” levels of capital.

The new deception however is no less worrying with our prudential regulator giving the impression that Australian banking, were it to suffer the acute stresses seen in other jurisdictions during the GFC, would be in good shape.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe