Strong Aussie banking sector 'spells good news for borrowers'

The strength of the banking sector in Australia has been identified as something that is particularly beneficial to those requiring credit cards or loans.

Steven Munchenberg, chief executive officer of the Australian Bankers' Association, asserted that financial institutions in the country have held up well when compared to those of other nations.

He spoke out against critics who said banks are too profitable, asserting that they are "vital" for the long-term economic stability of the country.

"Having solid, healthy banks means they have kept lending to businesses and households, so Australia has avoided many of the problems seen in other countries," he asserted.

The banking chief's views echo those recently put across by Treasurer Wayne Swan, who said the sector is one of the "core strengths" of the country that will help it emerge from the global financial crisis.

This comes after governor of the Reserve Bank of Australia Glenn Stevens told financial experts at the Anika Foundation luncheon that consumer spending, some of which may be done on credit cards, is likely to increase in the long term.

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