FED:Don't abuse new rules, Swan warns banks

AAP General News (Australia)
12-17-2010
FED:Don't abuse new rules, Swan warns banks

Treasurer WAYNE SWAN has taken another swipe at the major banks .. after several days
of intense scrutiny of banking competition.

The Reserve Bank and the banking watchdog have announced a new system .. which will
allow banking institutions to borrow money .. under new global regulations .. to tide
them over in emergencies.

Mr SWAN says the new standards won't come into full effect until 2015 .. so no Australian
bank will be able to cite them as justification for stinging customers with any extra
costs.

The major banks have been under the spotlight this week .. facing a Senate inquiry
into competition .. after last month's hefty increases in mortgage rates.

Mr SWAN also released a suite of reforms last Sunday .. aimed at making smaller lenders
more competitive with the big four.

AAP RTV cb/ajw/

KEYWORD: BANKS (CANBERRA)

� 2010 AAP Information Services Pty Limited (AAP) or its Licensors.