Australia’s banks emerge from crisis in credit

Australia’s banks are the envy of the world, at least from a funding perspective. They have weathered the financial crisis better than most, emerging stronger than before on a relative basis. But their funding models are being scrutinised, with their dependence on wholesale markets a concern, while observers warn of the dangers of the battle for deposits among Australia’s banks escalating into a war that would push their aggregate cost of funds even higher they are today.