A review of the Australian government's exposure to the country's biggest banks has knocked share prices and prompted warnings of ratings downgrades, even as credit markets see little reason to fear. Shares in anz, commonwealth bank of Australia, national Australia bank and WESTPAC have fallen around 8% since the start of September, partly on speculation that an independent inquiry may recommend limits to the use of public funds in the event of a banking crisis. The Financial System Inquiry is due to release its report in November, the same month that Australia hosts the G20 Leaders summit in Brisbane, and may call for the introduction of a new bail-in framework that would shift the burden of bank resolutions away from taxpayers and towards bank creditors, including senior bondholders.
展开▼
