LOANS NEWS AND GUIDES

One of Australia’s most influential fund managers says he is extremely bullish on the performance outlook for the Big Four banking groups over the next five to ten years and suggests that the Federal Government as a matter of policy, will do everything possible to sustain lending. Last week, David Deverall, managing director at Perpetual predicted that lenders would need to accept tighter regulation, in return for government policy which favours their growth. Such policy could include the continuation of the Federal deposit and wholesale funding guarantees. Mr. Deverall says he believes the deposit guarantee limit should be reduced to $25,000 from the current $1 million, adding that he believed that the Henry Report on taxation, which will be released next month, would recommend favourable tax treatment for retail deposits. The Federal Government would likely keep the Big Four’s smaller regional rivals, who were hit hard by the financial crisis “alive but on life support” in order to assuage concerns held by the Australian Competition & Consumer Commission and regional politicians. Mr.

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Australia’s Big Four Banks “National Champions”