Banks must pay for deposit insurance
Banks need to live with paying the fee for deposit insurance, the Reserve Bank of Australia said in its submission to the Financial System Inquiry."This would be consistent with the principle of users paying for the benefit provided," it said.Such a model is now common among depositor protection schemes internationally, the RBA said.Reversing this fee, or 'tax' as many banks prefer to label it, is a popular theme in bank submissions to the inquiry.