http://www.theage.com.au/business/push- ... -h705.htmlPush to end bank funding guarantee
ERIC JOHNSTON
October 21, 2009
PRESSURE is mounting on Treasurer Wayne Swan to start winding back the government guarantee that has underwritten debt raisings for banks, with the Reserve Bank board suggesting Australia has started to lag the world on ending the program.
A recovery in global debt markets has made banks less reliant on the wholesale funding guarantee introduced nearly a year ago to help banks get access to crucial financing amid the credit market turmoil.
The economic rebound has led some central banks to ''announce termination dates'' for measures designed to support markets, according to minutes of the RBA's October board meeting released yesterday. ''Guarantee schemes were being significantly curtailed or modified in several countries,'' the minutes said.
Yeah, that can start happening on the retail side too.