If a Reserve Bank proposal becomes a reality - borrowing costs are set to rise
If a Reserve Bank proposal becomes a reality - borrowing costs are set to rise
14 December 2018
The Reserve Bank today released its long-anticipated review of bank-capital requirements, which will now go out for consultation
It's proposing the high quality capital banks are required to hold be almost doubled.
Deputy Governor Geoff Bascand says it may slightly lift borrowing costs - and bank shareholders may earn a lower return on their investment.
But he believe these impacts would be more than offset by having a safer banking system.
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