Via Credit Suisse:
Bank Levy: 2-5% cost inflation The 2017/18 budget has announced a 6bp levy on bank liabilities on the four major banks and MQG effective 1 July. However with the initial budget papers scant on details on the levy with have delayed updating our models until the bill was introduced into parliament. Details of the levy: A quarterly levy of 1.5bp (6bp annually) will apply to any ADI that exceeds the A$100bn threshold (indexed to nominal GDP) total reported liabilities.
■ Eligible liabilities: The bill states that levy will be imposed on reported liabilities less the sum of AT1 capital, financial claims scheme deposits, lesser of derivative assets/liabilities and the balance of RBA exchange settlement accounts.
