2 Aug 2013

Australian banks may face levy to fund future bailouts

7:35 pm on 2 August 2013

In Australia, banking stocks have tumbled amid speculation that the federal government is considering a new bank levy to fund any future bailouts.

The levy is not expected to start until 2016.

The money raised will go into a new Financial Stability Fund and will be used in the event of a bank collapse.

Meanwhile, there are suggestions that Australian banks are set to cut the interest rates they pay on savings accounts to help pay for the new levy.

The Australian Financial Review quotes the Australian Bankers' Association as saying the fee is totally unneccesary and would be passed on to depositors through lower interest rates.

ANZ Bank, the biggest lender in New Zealand, says the levy won't have an impact on its customers here.