Australian banks fall after Jarden flags capital strain from corporate lending shift

ANZ group

16/06/2026 04:23

Updates
** Australian banks .AXFJ fall as much as 1.5%, head for worst session since June 4
** Jarden sees major Australian banks face increasing capital strain, driven by shift toward corporate lending, greater sensitivity to economic downturns, interest rate risks
** The Labor government said in May it would restrict negative gearing - which allows investors to offset property losses against taxable income - to newly built homes; move could slow investor housing credit growth
** Sustained shift toward corporate lending will increase capital requirements as these loans carry a higher risk weightage than housing loans - Jarden
** Says, banks may have over-optimized in a benign credit environment; risks can rise if cycle turns
** Despite recent re-rating, Jarden says major banks remain expensive at around 18 times earnings and not priced for any negative regime change
** Shares of CBA CBA.AX down nearly 1%, while both NAB NAB.AX and Westpac WBC.AX shed 0.8%

 (Reporting by Shruti Agarwal & Rajasik Mukherjee in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com))