BFCSA Blog

Inquiry to look at bank debt guarantee BY EVAN SCHWARTENMay 1, 2014, 8:59 pm Twitter G+ AAPAn inquiry will look at whether a debt guarantee for the big four banks has distorted the market.     The head of an inquiry into Australia's financial system says government backing of the big four banks during the global financial crisis may have given them an unfair advantage over smaller rivals. Small lenders and the Department of Treasury have argued the wholesale debt guarantee for major banks helped to create an unfair playing field and allowed the big four to access funds more cheaply. The chief of the federal government's financial system inquiry, David Murray, says there remains a perception Commonwealth Bank, ANZ, Westpac and National Australia Bank are too big to fail. "The perception of the government as a backstop may provide competitive advantages for some and can distort prices at the same...