The RBA Warns The Banks To Consider Their Future When Allocating Funds From Record Annual Profits

Getty/ Cameron Spencer

The RBA has advised Australian banks to not use record annual profits to increase dividend payouts.

The NAB, ANZ and Westpac have been tipped to sign-off on more than $27 billion in annual profit on September 30 when they close their accounts for the end of the 2013 fiscal year.

The Reserve Bank has suggested the banks think about their future and put profits towards their capital reserves.

“In considering potential actions, banks need to ensure that their internal capital buffers are sufficient to cope with stressed situations,” the RBA said in its semi-annual financial stability review.

Read the Financial Stability Review here.

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