Banks to hold more capital

The Reserve Bank is looking into making banks have to hold more capital saying this could strengthen them, should a 'one in 200' year financial crisis hit but the big players in banking don't like it. 

ANZ and ASB threatened the move could cause a dramatic and permanent slowdown to GDP, while Westpac has said it could cost Aucklanders $6000 more on their mortgages. There's been a lot of noise around this process but should we really be worried?

Simplicity Managing Founder Sam Stubbs spoke to The AM Show.

Watch the video.

Contact Newshub with your story tips:
news@newshub.co.nz