Bank safety depends on more than high capital, says RBA’s Ellis

reserve-bank-of-australia2

The Reserve Bank of Australia's head of financial stability, Luci Ellis, said banks with higher levels of capital are not necessarily safer than others. Speaking at a CPA Australia Finance and Accounting Expo on October 24, Ellis also said it would be a mistake to believe higher capital is the answer to the problem of financial instability.

For example, banks with more capital could feel "emboldened to try to grow faster or to take on other risks". Or, Ellis said, a bank might be required to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: