RBA: Australia's banks given clean bill of health

By Mozo ·

The Reserve Bank of Australia (RBA) recently gave the country’s banks a clean bill of health.

As part of the institution’s bi-annual Financial Stability Review, the bank stated the country’s financial centres have a promising outlook.

This is despite the economic downturn, which has hit crisis point in other countries across the world.

In fact, Australia is seen as being better placed than its global peers to ride out any further monetary upturns.

RBA said: "Overall, the report’s prognosis is a pretty clean bill of health for the Australian financial system."

This was attributed to a series of factors, including the relatively mild nature of the Australian downturn, as well as the "absence of large-scale exposures to structured securities".

Furthermore, conservative lending practises for housing, including the provision of low interest home loans, also played a part.

This comes as the country was assured it would not face a house price crash similar to those seen elsewhere by Commsec economist Craig James, speaking at the Your Money forum.

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