‘Aussie’s bank re­forms won’t hit rat­ing’

The Pak Banker - - Front Page -

SYD­NEY: Two global rat­ings agen­cies say the fed­eral govern­ment's pro­posed bank­ing com­pe­ti­tion re­forms will have no im­pact on banks' longterm credit rat­ings.

Moody's In­vestors Ser­vice and Fitch Rat­ings on Tues­day said there were no im­me­di­ate credit im­pli­ca­tions for banks and build­ing so­ci­eties from the govern­ment's pro­posed bank­ing com­pe­ti­tion re­forms.

Pa­trick Wins­bury, Moody's Syd­ney-based se­nior vice pres­i­dent, said the pro­posed pack­age was fairly bal­anced and likely to have an im­pact on ma­jor banks' credit rat­ings "over an ex­tended pe­riod - if at all".

"There­fore (they will) cre­ate limited near-term pres­sure on the credit pro­files of Aus­tralia's ma­jor banks," he said in a state­ment.

His com­ments came af­ter ri­val Fitch Rat­ings said the pro­posed com­pe­ti­tion re­forms would not im­pact Aus­tralian banks' credit rat­ings.

"From a credit per­spec­tive, these ini­tia­tives may re­sult in lower fee rev­enue for the banks al­though, to the ex­tent al­lowed by com­pe­ti­tion, this may ul­ti­mately be off­set else­where (e.g. by rais­ing in­ter­est rates)," Fitch said in a sep­a­rate state­ment. Moody's said there was still a high po­ten­tial for ex­tra­or­di­nary sup­port to be pro­vided to Aus­tralia's banks in times of stress. -PB News

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