The ASX200 is down more than 1% in early trade following a weak lead from global markets.
A short time ago, the local index was down 1.21% with bank stocks leading the falls.
The ASX200 Financials Index was down more than 1.3%. All big four banks were more than 1% lower, with ANZ the worst of the bunch down 1.7%.
Regional banks were even harder hit, with Bank of Queensland and Bendigo & Adelaide Bank both down more than 2%. Macquarie Bank was also more than 2% lower in early trade.
The big miners were resilient in early trade, with Rio trading flat while BHP was up by 0.3%.
Direct iron ore play Fortescue was down 3.2%, after falls in spot prices for benchmark iron ore last night took total losses to almost 5% in July.
Coca-Cola Amatil has crashed by another 4.9% in early trade, following heavy losses yesterday after the decision by Woolworths not to stock a new low-sugar version of Coke.