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


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

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