Let Australian banks compete with other banks on their own feet

Comments on Michael Stutchbury “Bank props must go”, 4/08/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/bank_props_must_go/

Stutchbury is absolutely right in that the bank guarantees should go as the danger of the global financial crisis is passing and over.

Australian banks have been the safest and most resilient among the world in the financial crisis. They are very profitable. There is no need for continued government guarantee. They should be able to stand on their own feet and compete with any banks.

Unnecessary government supports will distort the market and the price signals, hence alter the behaviours of private businesses. Further, there is no need to put taxpayers at unnecessary risk for the profit of private businesses.