SYDNEY -- Measures to rein in Australian banks fell short of public expectation Sunday when the government said it would improve banking competition in Australia but wouldn't directly punish the country's four dominant banks.

After months of threats, Australia's government on Sunday introduced a series of measures aimed at improving banking competition in a country where four large banks are raising lending rates despite bumper profits. Treasurer Wayne Swan said the government will inject an additional A$4 billion ($3.94 billion) into securitization markets, while also allowing the issuance of covered bonds. In addition, the government will empower a key regulator to prosecute price signaling on rates from large banks, while a government guarantee of deposits will become a permanent function of the banking system.
(Source: The Wall Street Journal)