Aussie banks 'flush with funds to lend'

Wednesday 12 October 2011

Article by Mozo

Aussies considering taking out a home loan or getting credit cards may be encouraged to learn that one expert has claimed banks in the country are "flush with funds".

Banks

In an article for Business Spectator, business commentator Robert Gottliebsen asserted that many are "looking around for sound people and businesses to lend to".

This may be welcome news for Aussies who are thinking about getting another credit card.

The expert observed that financial institutions have raised a significant amount of money through deposits and have "borrowed longer-term on the wholesale markets with the expectations of much stronger growth".

Last month, figures released by the Australian Prudential Regulation Authority, RBA and Standard & Poor revealed that in the last five years, the proportion of funding for banks from domestic deposits rose from less than 45 per cent to about 50 per cent.

This provided banks with a buffer against the increased cost of borrowing money on global markets.

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