Australia Can Weather Heavy Loan Defaults, Says Fitch

13 Oct 2010

Fitch Ratings says Australian banks are strong enough to withstand the impact of even a severe 40% drop in home prices and a loan default rate of 8%.

Fitch Ratings says Australian banks are strong enough to withstand the impact of even a severe 40% drop in home prices and a loan default rate of 8%. Banks would stand lose up to A$10 billion ($9.9 billion) under the scenario, while mortgage insurers would lose A$7 billion ...

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