Originally Posted by
Snoopy
I guess this goes back to me suggesting it would take three years years from listing before Heartland got a banking licence, and they received it after one year.
But was I really wrong? I couldn't help notice this paragraph from Tim Hunter's SST article.
"As a new bank, Heartland has been given more onerous capital requirements by the Reserve Bank than the established players. Its tier-one capital ratio - basically the equity as a percentage of risk-weighted assets - must exceed 12 per cent, while the requirement for ANZ and Westpac is 6 per cent."
So although new governor Wheeler granted Heartland a banking licence, it looks more like a learning licence with certain restrictions that do not apply to the big banks. So did Heartland really get a banking licence in the accepted sense? I would suggest Heartland are still driving around with an L plate in the back window while they fulfill they requirement to get a full licence, which could indeed still be years away.
SNOOPY