21 September 2012 6:56am

Major banks in Australia need yet more capital, the International Monetary Fund argued in a review of macroeconomic policy published overnight.

"To further bolster financial system stability ...we recommend that the authorities continue to emphasise intensive bank supervision and introduce higher loss absorbency for systemically important banks," the IMF wrote.

This could be read as the IMF supporting the introduction of still another layer of minimum capital for the major banks.

The...