SYDNEY (Reuters) – Australia’s central financial institution has barred Canada’s world funding financial institution from confidential briefings after one in every of its purchasers leaked particulars from a closed door briefing, two sources conscious of the choice stated on Tuesday.
That is the second occasion of a leak after the Reserve Financial institution of Australia (RBA) was criticised final yr when then Governor Philip Lowe briefed merchants at a personal assembly hosted by Barrenjoey Capital Companions, after the central financial institution stunned markets with a hawkish outlook on charges.
Assistant Governor Christopher Kent met with economists and buying and selling purchasers of RBC Capital Markets, the funding banking arm of Royal Financial institution of Canada, in February after the RBA held the money price regular at 4.35%, two sources instructed Reuters. The sources didn’t wish to be recognized because the discussions had been non-public.
Following the assembly, RBC Capital Markets’ buying and selling shopper shared what Kent stated on the briefing with an exterior affiliate, the sources stated.
When RBC found this leak it proactively revealed the data to the RBA, and the central financial institution put a 12-month ban on RBC for the breach, one of many supply stated.
RBC Capital Markets and the RBA declined to touch upon the matter.
The story was first reported by the Australian Monetary Assessment on Tuesday.
Michele Bullock took over from Lowe as RBA governor in September final yr. Lowe joined the board of Barrenjoey final month.
When requested concerning the concern, Australia’s Treasurer Jim Chalmers stated it was not for the federal government to handle or police agreements between the Reserve Financial institution and the industrial banks.
“However I do share the priority …. that some components of confidentiality might have been breached, and I’m positive that our colleagues on the financial institution are working by way of what which means for the best way that they conduct these briefings and who’s concerned,” Chalmers instructed reporters in a information briefing in Canberra.
