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