if cnp goes would cba drop another 10 percent, page-13

Thats great that they are not lending much. However they would not have the funds available. Under the Prime assets ratio (PAR) APRA requires the bank to hold 4% of the value of their liabilities as prime assets. This amount is required to allow liquidity for a minumum of five days even under extreme conditions. Which effectively means for every $1 you take out they cannot lend $24 now imagine if all people effected by Centro's collapse (shareholders, individual retailers, employees, shopper) all withdrew at the same time. This could easily run into billions of dollars all withdrawn on the same day. From the CBA balance sheet 30 JUN 2008 the cash and liquid assets were 7.736 Billion dollars. So that should be the target figure. Becuase once that figure is reached they will need to come up with a whole 4% of loans value again. Loans would have to be recalled and no one would ever bank with CBA again.

I am sure we could get everyone affected by ABS onboard.