The Government is cutting a $12 billion funding lifeline for the Commonwealth Bank of Australia’s flagship Sydney branch, with the first tranche of the loan now due to be exhausted by December 1.
Photo: Simon Schluter It was announced on Wednesday the government was ending the lifeline, which will see the bank’s annual funding needs slashed by about $3.5 billion.
It was the first official announcement from Treasurer Scott Morrison that the bank would end its $5 billion bailout program, which began in December last year.
The bank’s main investment arm, Commonwealth Bank Australia, is also cutting $4.4 billion from its capital investment programme, and the bank has also cut back on its loan books for the year.
As the funding for the bank runs out, it will not be able to continue operations and the Australian Bureau of Statistics will not have enough figures to estimate the bank is running out of money.