AFG yesterday asked regulators to keep a watchful eye on the big banks to ensure they do not use the government's recently announced major bank levy and the findings from their own Australian Bankers Association retail banking remuneration review as justification for changes that reduce the financial viability of providing broking services, thereby leaving large portions of the lending sector without a distribution network.  "The 'big bank levy' announced by the Treasurer on budget night recognises the artificial taxpayer subsidy the four major banks and Macquarie have received through their lower borrowing costs since the GFC," AFG's interim CEO David Bailey said.  "The government is finally seeking to level the playing field." IMB Ltd, rated by S&P as BBB+ with a 'negative' outlook, has mandated ANZ for a potential Australian dollar denominated Basel III-compliant 10NC5 subordinated floating rate note Tier 2 issue. That is, the instruments will have a 10-year maturity tenor, although callable in five years. Initial price talk was for "three-month [bank bill swap rate] plus low 300s" according to a banker working on the transaction, which is expected to launch in the near future, "subject to market conditions". ANZ priced 10NC5 notes last year at 166 basis points over three-month BBSW. Last month ME's 10NC5 Aug 2024 Tier 2 notes were trading at indicative mid-mark levels of 3-month BBSW + 192 bps, according to a report from FIIG.