RBA: Banks in Australia "more resilient" than Europe's

Wednesday 19 October 2011

Article by Mozo

Aussies with term deposits may be encouraged by the assertion of a senior official at the Reserve Bank of Australia (RBA) that the nation's financial institutions are "more resilient" than those in Europe.

Aussie banks

Guy Debelle, assistant governor of the central bank, said at the 24th Annual Finance and Treasury Association Congress in Sydney, observed that the RBA's "provision of liquidity has not changed in recent times".

He noted that since May 2010, the European Central Bank has been "willing to provide three-month funding to banks in unlimited amounts at its policy rate".

Those who are planning to start putting some of their income aside may be encouraged by the expert's confidence in the Australian banking sector.

Mr Debelle said the Australian banks' funding structures were "considerably more resilient to periods of stressed markets than they were previously".

Last month, the Australian Bankers' Association issued a list of proposals to the government, which it suggested could encourage people to use savings accounts more.

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