Australia Banks Face $25 Billion Fresh Capital After Inquiry
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Commonwealth Bank of Australia and its three main competitors may need as much as A$30 billion ($25 billion) in fresh capital after a government inquiry said lenders should have “unquestionably strong” reserves.
Australian banks’ capital buffers should be in the top quartile of global lenders and they should set aside more funds against potential mortgage losses, the Financial System Inquiry report released by Treasurer Joe Hockey yesterday showed.