The Australian banks are in an eye of the storm of negativity with everything going against them including a falling $A, rising interest rate concerns and...

The Australian banks are in an eye of the storm of negativity with everything going against them including a falling $A, rising interest rate concerns and regulatory uncertainties. The speculation of higher capital requirements will create banks with lower risk, but lower profitability and growth. With Australia's economy desperately in need of a kick start as the mining boom grinds to a halt, let's hope the double risk of the RBA wanting to stop/slow the housing boom before a bubble forms and the Murray Inquiry potentially putting a brake on our banks does not occur too aggressively, it could only damage confidence and put a greater delay on any recovery. Most analysts believe it is inevitable that major banks are required to hold more capital, but a significant part of this cost will simply be passed onto customers. A significant number of people told me I was mad when I said the banks were a sell 2/3 months ago, now hopefully some will listen when I say it's time for investors to accumulate slowly. My view on the banks: (VIEW LINK)