The major banks are lower in early trade after the government's financial system announcement

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Australian financial stocks have shown scant regard for the Turnbull government’s announcement this morning that it has decided to back most of the recommendations presented in David Murray’s financial system inquiry.

Having fallen by as much as 0.62% in early trade, the broader ASX 200 financials index is now trading flat for the session after 30 minutes of trade.

While the broader financials index is flat, Australia’s larger banks are all trading lower.

CBA, Westpac, ANZ and NAB are all off between 0.44% to 1.28%, largely offsetting strength in listed property trusts.

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