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.