May 10, 2017 / 6:15 AM / 2 months ago

BRIEF-Fitch says Australia budget negative for banks but impact manageable

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May 10 (Reuters) -

* Australia budget negative for banks but impact manageable

* Australia's budget contains measures that may negatively affect bank credit profiles, but not significantly enough to have an immediate ratings impact

* Proposals to allow regulators to better target housing market risks are likely to support banking system stability

* Creation of single dispute resolution authority, measure to increase executive accountability less likely to have direct effect on bank credit profiles

* Measures to increase competition may have greater effect on the major banks' credit profiles in the longer-term in Australia

* Levy on large banks in Australia would have the most immediate financial impact

* Bank levy in Australia could intensify competition for retail deposits by raising the cost of wholesale funding Source text for Eikon:

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