DecemberStar,There more to the "point" there friend.If they call...

DecemberStar,

There more to the "point" there friend.

If they call up a loan on December 15, one that they know cannot be repaid, then the ONLY alternative is to book an impairment provision, which they have to take as a hit on their balance sheet, thereby exacerbating their need for further Tier 1 capital.

Ummmm....so call in the loan = impairment provision and reduction in Tier 1 capital

Or

Don't call in the loan, roll it over, and continue with usual capital raising to bring Tier 1 capital over 8%. (CBA currently at 7.5%)

Waddya reckon??