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Big banks face profitability pressure

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Australian Broker | 22 Aug 2016, 07:22 AM Agree 0
Global credit agency, Moody’s, has downgraded its rating outlook for Australia’s big four banks from stable to negative, claiming margin pressure will erode profitability
  • Really? | 22 Aug 2016, 09:52 AM Agree 0
    They can thank APRA.
    The restrictions of them having to hold more capital, has reduced/affected their profitability.
    APRA want them to hold more capital to make them more stable, yet it makes them less profitable, and hence they get a Moody's downgrade - which can make their efforts to get more capital, more expensive.......and all the time the customer pays.
    Nice one APRA.
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