Briefs: Hockey confirms bank deposit levy, NZ bank profits down

Banking Day staff
  • Treasurer Joe Hockey has confirmed that a bank deposit levy will be included in next month's Australian Government Budget, according to a report in the Australian Financial Review. The tax is due to start next year and to raise A$500 million. The Financial System Inquiry recommended that any levy should be applied on an ex-post basis, but Hockey said  there were questions about the Government's ability to impose a levy after a bank failure.
  • New Zealand bank profits fell slightly in the December quarter from the record results in the previous quarter, even as their net interest margins rose, reports Newsroom. KPMG's quarterly Financial Institutions Performance Survey shows the New Zealand banking sector net profit fell 8.3 per NZ$1.15 billion, compared to the September quarter, when it rose 11.5 per cent.