Why Australian Banks May Need $25B Extra Capital

David Murray, former CEO of the Commonwealth Bank of Australia, discusses his inquiry into Australia's financial system. The inquiry includes 44 recommendations, focusing on superannuation and the need for the big four banks to hold more capital. Murray's speech highlights the importance of adapting the financial system to Australia's unique circumstances, emphasizing resilience, consumer outcomes, and competition. The recommended increase in capital ratios for banks aims to ensure financial stability, though it has been met with some resistance from the banks.

What is the main focus of David Murray's inquiry into the financial system?

• Expanding international trade

• Improving customer service

• Increasing bank capital holdings

• Reducing bank interest rates

What is the primary goal of the financial system inquiry according to David Murray?

• To assess the system's strengths and weaknesses

• To increase government control over banks

• To deliver a specific outcome

• To reduce taxes on financial institutions

Which aspect of Australia's economy is considered in the financial system inquiry?

• Its status as a large manufacturing hub

• Its role as a smaller wealthy open commodity exporter

• Its focus on technology and innovation

• Its dependency on foreign aid

What are the two paradigm shifts mentioned by David Murray in his recommendations?

• Resilience and consumer outcomes

• Interest rates and inflation

• Globalization and digitalization

• Taxation and government spending

How much additional capital might the big four banks need to raise according to the inquiry?

• 10 to 15 billion dollars

• 5 to 10 billion dollars

• 15 to 25 billion dollars

• 25 to 35 billion dollars