Shares of AMP (ASX:AMP) fell over 2% in early trading on Thursday, those of Macquarie Group (ASX:MQG) fell almost 1%, and those of Bendigo and Adelaide Bank (ASX:BEN) and MyState (ASX:MYS) each fell slightly after the Council of Financial Regulators and the Australian Competition and Consumer Commission published their review into small and mid-sized banks.

Meanwhile, the stock prices of Bank of Queensland (ASX:BOQ) edged higher, and Judo Capital Holdings (ASX:JDO) rose past 1%.

The review made recommendations for nine actions to increase competition in the sector, and the Australian government accepted in principle eight of these. The recommendations include measures to reduce regulatory burden and reporting requirements for smaller banks.

The Australian Prudential Regulation Authority said it will make changes to its banking framework to increase proportionality and reduce regulatory burden as part of the review. Meanwhile, the Australian Securities and Investments Commission said it will contact small banks to implement the recommended reduction in the frequency of internal dispute resolution data reporting for small banks from six months to 12 months.