POWERED BY MOMENTUM MEDIA
Levy on major banks should be higher
Any levy on the major banks and Macquarie should be applied by the Commonwealth Government and at a higher rate, ME Bank believes.
The industry superannuation fund owned bank said it agreed with the South Australian Government that the banks that benefited from an implicit guarantee were accruing a benefit materially greater than the current levy, and therefore should pay more.
ME Bank chief executive, Jamie McPhee, said: “The major banks receive a 20 to 30 basis point benefit from Australian taxpayers for being ‘too big to fail’, giving them significant competitive advantages over smaller banks, making Australia’s banking system more concentrated, increasing risk, eroding competition, and reducing customer choice”.
“A highly competitive banking industry over the long-term is in the long-term interests of Australian consumers as is an unquestionably strong banking system, both principles for which ME will continue to advocate,” he said.
Recommended for you
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
The QAR lead reviewer has told a Senate committee that the government’s demands of super funds conflict with their original purpose.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
Typical response from a Union based pretend bank. The major banks have an extensive and costly network and need to comply with capital adequacy requirements so ME bank comments only serve to reduce the major banks to the lowest common denominator. This would be very damaging to Australia's relatively high standing and security in the banking sector which shielded our country from the devestating effects of the GFC.