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ISCOVER
By: Staff Reporter
Unjustly tough banking regulation will lead to higher borrowing costs, according to CBA chief executive Ralph Norris.
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Speaking at an American Chamber of Commerce lunch yesterday, Mr Norris said while the wrong regulatory regime could cause credit to be restricted and funding costs to rise, Australia was more likely to end up with a measured and sensible approach.
“I believe the Australian government and our regulators recognise the risks associated with regulatory change,” Mr Norris told The Australian Financial Review.
“Based on recent interactions I’ve had with them, I expect that we will end up with a regime which addresses the reasonable concerns of regulators without imposing the requirements which have significant negative consequences for our customers and ultimately the broader Australian economy.”
But while Mr Norris was confident Australian regulators would do all they could to make sure regulation was not heavy handed, he said the country’s banks still needed to be careful that any global regulation is well managed and “not materially disadvantaged by changes driven by poor practices in the northern hemisphere”.
