Australia's banking sector is in good shape, says IMF

The International Monetary Fund (IMF) believes Australia's banking sector is "sturdy" and continues to outperform many other countries.

Australia is now one of very few nations that has held on to its AAA rating and the IMF suggested the government's timely response to the global financial crisis has stood the country in good stead.

However, it also noted that better stress testing may be needed so experts can identify and monitor risks to the banking system.

In summary, the organisation said the nation's finances are "sound, resilient and well managed".

The report also confirmed the "big four" – Westpac, Commonwealth Bank, National Australia Bank and ANZ – are still dominating the banking sector.

While this is true, numerous reports have suggested people are setting up bank accounts with less established companies.

A recent study by Roy Morgan showed that while the big four have improved their customer satisfaction ratings of late, Aussies are generally happier with the services provided by smaller banks.

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