Australia's response to financial system inquiry, making banks hold more capital, could drive up NZ interest rates

Wed, 21 Oct 2015

By Jonathan Underhill Oct. 22 (BusinessDesk) - The Australian government's response to the financial system inquiry could drive up interest rates at New Zealand's biggest lenders as their Australian parent banks seek higher returns because of the requirement that they hold more capital. The Australian Federal Government has largely accepted the recommendations of the inquiry set up in late 2013 to conduct "a root and branch examination" of Australia’s financial system and chaired by former Commonwealth Bank chief executive David Murray. A...

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