Banking Valuation matrix, page-16

Sure the RC has dug up serious concerns about wealth management advisors and banking issues around prudent lending criteria etc.

@Grajem12 ,

This is another opportunity for righteous indignation on the part of the media to attract some attention and an opportunity for politicians to perform some grandstanding.

The fact is that the overwhelming majority of the issues being reveal by the Royal Commission relate to the wealth management activities of the banks, which represent between just 5% to 8% of their overall business.

Make no mistake, the adverse publicity the banks are receiving is mostly an expunging of the overall loathing that people feel for banks, anyway, but when it comes to significantly impairing the value of their franchises, the impact will be limited to some additional regulatory oversight measures that should have been put in place anyway.

As such, bank shareholders should welcome any recommendations to improve lending and advice practices, because one of the unintended consequences of such increased regulation will be to increase entry barriers into the Australian retail banking market.