Comment: time to end free ride
Australia's banks should be made to contribute to a fund to ensure their long-term stability and help prevent any future financial disaster, says finance law professor Ross Buckley.
Published on the 05 May 2011
Australia's response to the global financial crisis has sown the seeds for a future financial disaster, warns professor of finance law, Ross Buckley, and our banks should be made to contribute to a fund to ensure their long-term stability.
Recent record half-year bank profits have confirmed the strength of Australia's big four banks, but the banks are now dangerously large, he says.
What's worse, Professor Buckley says, the Government is encouraging banks to take risks by guaranteeing customers' deposits for free. Instead it should be demanding the banks follow US and European leads and contribute to a fund to ensure their long-term stability.
Listen to Professor Buckley's interview on ABC Radio's PM.
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