Financial regulators stay assured Australia’s banking system, together with smaller banks, can experience out ructions in world monetary markets.
The Australian Prudential Regulation Authority ramped up its monitoring regime after the collapse of Silicon Valley Bank and UBS’s takeover of Credit Suisse.
While APRA’s intensive supervision continues, its investigations have to date strengthened its perception Australian banks, together with smaller banks, are well-capitalised and have entry to sufficient liquidity.
Rapid motion from regulators and authorities within the US and Europe has to date stabilised markets and improved confidence, though some volatility stays.
Treasurer Jim Chalmers mentioned Australia was not proof against volatility in world monetary markets.
“But Australians should be reassured that our banks are well regulated, well capitalised and highly liquid and are in a better position than most to deal with these disruptions,” he mentioned.
Dr Chalmers mentioned actions taken by central banks and worldwide monetary authorities have been working to calm markets.
“While we’ve seen some strains in global funding markets, our domestic funding markets continue to function well,” he mentioned.
Source: www.perthnow.com.au
