Sydney, 10 May 2017
Macquarie Group Limited (ASX: MQG; ADR: MQBKY) today notes the Government's proposed introduction of a bank levy to be applied from 1 July 2017 to major Authorised Deposit-taking Institutions (ADIs), with assessed liabilities exceeding $A100 billion.
Based on the information available in the Budget, we understand the proposed levy of 0.06% per annum will apply to relevant ADIs’ liabilities, less Additional Tier 1 Capital (AT1) and deposits protected by the Financial Claims Scheme.
At this stage, the impact on Macquarie is unclear. It is uncertain whether the proposed levy will apply to Macquarie Bank Limited's statutory liabilities, funded balance sheet or whether liabilities relating to foreign businesses or subsidiaries will be also be included.