ISCOVER
The government is under pressure to overhaul its deposit guarantee scheme just days before it comes into force.
The pressure comes as banks voice their concerns that the three year $1 million deposit guarantee threshold will have significant distortionary effects on the financial system.
According to today’s Australian Financial Review the major banks have met with prime minister Kevin Rudd and treasurer Wayne Swan several times over the past month warning that the deposit guarantee must be wound back in duration and scope.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Looking for more benefits?
Become a Premium Member.
If it didn’t, they said, it could become ingrained in the financial system and challenging to remove.
Published: 21-11-08
Today’s other news
No impact to Citibank third-party business by worldwide job cutsFirst home buyer activity highest in seven years
FirstMac ‘takes fight to banks’ with 3.99pc introductory rate
Office market to heat up
JOIN THE DISCUSSION