Opinion: Avoiding Australia’s bank funding crisis-to-be

15 Jul 2010

The country’s major lenders have well-documented wholesale funding needs that are only projected to grow in the coming years. The banks need to find new investors and cut their lending books, or the entire nation faces a financial crisis.

“There’s a big reason Australia usually doesn’t have a fiscal deficit,” a senior banker tells Asiamoney in Sydney. “The banks carry it instead.”

Australia has gained many plaudits for having adroitly danced around recession and returned to decent economic growth. Jealous western observers point to its thriving commodities ...

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