Australia’s four major banks are able to access wholesale funding at cheaper rates because of an implied guarantee that the federal government will not let them fail because of their size. ME Bank CEO Jamie McPhee says governments should tax the bigger banks because they get cheaper funding as a result of the “too big to fail” guarantee, and that this would make it easier for smaller banks to compete. From The Australian:
“We’re not asking for a handout. We’re asking to compete fairly. That it’s in the best interest of the consumer,” Mr McPhee said…
