the adviser logo

Senate inquiry calls for wholesale funding review

by Staff Reporter7 minute read
The Adviser

In what could be a win for small and regional banks, a senate inquiry has urged the government to review their controversial bank guarantee.

Yesterday, the senate inquiry released a report that calls for a review of the government’s decision to charge smaller banks higher fees to gain the benefits of wholesale funding guarantees.

According to the regulations currently in place, banks with an A credit rating are required to pay a 1 per cent annual fee on any funds raised under the guarantee, while banks with a AA credit rating pay only 0.7 per cent a year.

Although some banks have managed to raise funds on their own, more than $120 billion has been raised using the wholesale funding guarantee since it was introduced late last year.

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more