Westpac has lost its High Court challenge against Inland Revenue and has been ordered to pay almost $1 billion in back taxes.

Westpac Bank faces a tax bill of close to $1 billion after losing one of New Zealand's largest ever tax avoidance cases.

Westpac has lost its $918m tax battle with Inland Revenue.

The Federal Reserve is beefing up its examination of US banks, fearing that profligate lending to commercial property developers could ultimately prove as damaging to the financial system as the subprime mortgage debacle.

Internet banking could become old hat as consumers now opt to use their mobile phones.