THE lingering effects of the federal government's soon-to-disappear bank funding guarantee will cost the Bank of Queensland $30 million a year in pre-tax profit and hamper its competitive position for another four years, its managing director David Liddy said yesterday.

THE Federal Government is coming under pressure to overhaul its wholesale funding guarantee scheme for big banks after US regulators detailed plans to either remove or water down an equivalent support scheme from next month.

LEADING economists have derided continuing claims by the Opposition that government debt is forcing up Australian retail mortgage rates.

There's a huge amount of hand-wringing going on about the future of the country's second-tier banks. From a somewhat healthy group of five, this band of brotherly bankers has shrunk to three with growing concerns being expressed that over time the remainder could disappear altogether.

Mortgage financing for self-employed individuals is looking to become harder as mortgage companies respond to the world financial crisis.