By Gareth Vaughan
Australasia's big four banks will inevitably have to hold more capital but they're likely to pass at least some of the cost of having to do this onto customers, and be able to continue generating returns on equity above 15%, UBS analysts say.
Sydney-based UBS banking analysts Jonathan Mott and Adam Lee say the combination of the Australian Government's Financial System Inquiry and expected moves by the G20 mean it's inevitable the Australian parents of New Zealand's big four banks - ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac - will be required to hold higher levels of capital.
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