In the latest update from TMS Capital, Ben Clark explains why he thinks there’s still downside in the banks; “Last year we saw significant raisings done by the banks, and not to invest for growth, but just to sit on cash, which hinders a lot of financial metrics of the companies.” It’s not over yet - he’s expecting further upgrades to capital requirements; “A couple of weeks ago, we probably got the clearest indication yet from APRA, that they want the banks to raise further capital.” It’s not all bad news. Jeremy Hook says their backtesting indicates that a buying opportunity could follow another capital raising; “The time to buy the banks was after the second capital raising… They’ve gone once in this cycle, which was last year, if they go again, watch that as a timing point for a turnaround.” Watch the video below for their full thoughts on the banks (from 4:30), also includes a discussion on the future of Telstra (6:30)