The ANZ has told the Reserve Bank its proposal to make banks hold more capital will discourage productive investment and hurt economic growth.
And all four of the big banks say it would lead to higher interest rates for borrowers. '
But members of the public have advised the Reserve Bank not to be fooled by what big Australian-owned banks tell it.
On Monday the Reserve Bank published the submissions its received on its proposal. Two thirds came from members of the public.
Dr Claire Matthews is from Massey University's business school. She discusses the outcome with Corin Dann.
