(17 December 2010 – Australia) Concern has arisen that smaller lenders, including Suncorp and Bank of Queensland, may not be able to access funding from the Australia Office of Financial Management (AOFM) under the government’s bank sector reform package.Michael Bath, acting CEO of AOFM, said he could no longer invest taxpayer funds in regional banks and non-bank lenders if major banks held shares in them through their wealth management businesses.
The comments from the head of the AOFM came after treasurer Wayne Swan announced that major banks would not receive any of the additional A$4 billion allocated to invest in residential mortgage-backed securities.
Mr Bath noted he would be seeking further clarification on the issue.