The Greens say banks received too much financial benefit from cheap pandemic era funding from the RBA, but governor Michele Bullock says it helped consumers.
The Greens have proposed a $4.8 billion tax on banks to recover financial benefits they purportedly received from a cheap Reserve Bank of Australia loan scheme offered during the pandemic.
A Parliamentary Budget Office costing commissioned by the Greens released on Thursday proposes a new levy be imposed on the banks’ TFF funding, calculated by the difference between the RBA cash rate and the interest rate the banks paid for the funds .Greens senator Nick McKim said: “Banks are making massive profits during a cost-of-living crisis using handouts that have blown a massive hole in the central bank’s balance sheet.
Ms Bullock told Senator McKim at a Senate hearing on Thursday the TFF money “didn’t actually go into ballooning profits for the banks”.to move it out of negative equity.“The fact that we have negative equity actually doesn’t affect our operations,” she said. “The beneficiaries of the TFF were Australian businesses and households, not banks, and the funding will be paid back by June 2024 as required,” she said.
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