Bank stocks well off lows but still down a collective 1.2% at 3.30 pm

CMC Markets

With half an hour until the market closes the bodies on banking stock candles are looking smaller and the tails larger as stocks recover from the initial shock on this morning's reports that a deposit insurance levy will be introduced. NAB is the worst affected down 1.7% on the day while Bank of Queensland is the least, down only 0.3%. This possibly reflects a view that deposit insurance might improve its competitive position against the bigger banks in attracting deposits