Australia is well beyond the worst of the financial crisis and is on the road to recovery says RBA assistant governor, Malcolm Edey.
Edey delivered his upbeat assessment at a financial services conference in Sydney today, claiming Australia’s banking system has proven to be a lot more robust than some of its counterparts abroad.
“The past year has been an extremely challenging time, but Australia’s financial system, like the economy itself, has come through it in better shape than most,” Edey said.
In a recent review of the stability of Australia’s financial system, the RBA gave the system high marks and highlighted the ongoing profitability among the major banks. Edey said Australia’s major banks have so far profited from the relative resilience of Australia’s economy.
“The Australian banks were making good profits in their domestic operations and, in a period when banks in some other jurisdictions were building up large portfolios of high-risk securities, the Australian banks tended to focus their activities on domestic lending,” he noted.
“The good news is that things are now improving, and have been for some months. The world economy is returning to growth,” he added.
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