Australian banks rebound from dip after levy announcement

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Shares in major Australian banks climbed in morning trade on Thursday after dipping the previous session in response to a new levy on lenders’ balance sheet liabilities.

Australia’s treasurer Scott Morrison had revealed in the federal budget on Tuesday night that Commonwealth Bank of Australia, National Australia Bank, Westpac, ANZ and Macquarie Group would incur a charge on their liabilities of 6 basis points annually from a levy that would raise A$6.2bn for the government over four years.

That sent shares in the big four banks lower on Wednesday, extending a decline from Tuesday that had wiped A$14bn from their combined market cap.

CBA was up 1.3 per cent on Thursday after closing down 0.4 per cent, while Westpac and NAB were both up 1 per cent after shedding 0.7 per cent on Wednesday. ANZ, which had managed to climb back into the black late on Wednesday to close up 0.8 per cent, was 0.9 per cent higher.

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