US ratings agency Fitch out with a note 30 Nov
- The Royal Commission into alleged misconduct in Australia's financial sector announced on 30 November 2017 adds to the challenges for the system
- It could potentially weaken the reputation of the system or individual entities, and exert further pressure on profitability, even if it does not identify broad or significant failings
- We continue to believe the system is well regulated and that the major banks are among the strongest that we rate globally.
- However, momentum for an inquiry has increased following a number of conduct issues across wealth management, life insurance and banking that have been identified in recent years.
- These incidents appear to be isolated, and we have not changed our view that the risk-management frameworks and policies of Australian banks are fundamentally sound.
- Any commission findings to the contrary are likely to result in Fitch reviewing ratings of affected banks
Full report here
AUDUSD still near session highs at 0.7588
