Jim Chalmers says the government’s plan to let banks issue more debt will improve competition and productivity in the sector as rising inflation and interest rates sour the economic outlook.
In a speech to the Citi A50 Australian Economic Forum on Friday, the Treasurer flagged an increased cap on banks’ covered bond issuance, a type of secured debt backed by both the issuer and a designated pool of assets, as part of a small package of measures he claimed would reduce red tape in the financial sector by $780 million a year.
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