Topic: Financial Stability

Financial Stability Banknotes of many countries overlay and form a kind of carpet.
Photo: jayk7 – Getty Images

The Nature of Australian Banks' Offshore Funding

Kellie Bellrose and David Norman

Australian banks access large and deep foreign funding markets to supplement their domestic funding. Looking at the major banks’ worldwide operations, such offshore funding accounts for about one-third of their assets. This funding is raised in a variety of ways, across several countries and by various entities within the banking groups. While offshore funding can create vulnerabilities, these are appropriately mitigated by various factors. It would nonetheless be desirable for banks to continue to lengthen the maturity of their offshore debt securities.

funding composition, banking, bonds
Financial Stability A puzzle showing flags of the G20 countries
Photo: KTSDesign/Science Photo Library – Getty Images

A Decade of Post-crisis G20 Financial Sector Reforms

Mustafa Yuksel

The global financial crisis resulted in significant disruption to markets, financial systems and economies. It also led to comprehensive reform of the financial sector by the G20 group of countries. After a decade of policy design and implementation, standards in the global financial system and regulatory approaches in many countries have changed substantially to improve financial system resilience. Australia, as a G20 member, has been active in implementing these reforms. This article looks at the main financial sector reforms developed in the immediate post-crisis period, their implementation in Australia and the more recent shift in international bodies' focus to assessing whether these reforms have met their intended objectives.

financial stability, reforms
Financial Stability
Photo: Kenishirotie

Financial Stability Risks and Retailing

Gabriela Araujo and Timoth de Atholia

Discretionary goods retailers are facing a challenging environment of increased competition, slow growth in consumer spending and changing consumer preferences. Despite this, these retailers generally appear to be in good financial health and there are many new shopping centres and refurbishments in the pipeline. Banks are active in funding these developments, and are increasing their exposure to retail commercial property, although they are reducing their exposure to retail businesses. If these new developments fail to attract sufficient customer spending, retailers may find themselves unable to pay rent to landlords who have taken on additional debt, and this could lead to losses at banks.

financial stability, retail

The graphs in the Bulletin were generated using Mathematica.

ISSN 1837-7211 (Online)