A nervous few days for banks
A nervous few days for banks
2 December 2019
The Reserve Bank's expected to make its final decision this Thursday on whether to raise the amount of money it expects banks to hold in reserve.
Greg Smith from Fat Prophets expects it to go ahead with the proposal to almost double the capital requirement.
He says that may take the wind out of the economy at precisely the wrong time.
He says the Australian banks account for about 80 percent of all lending in this country and, if this goes ahead, they may pull back on that.
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