Australian Bank and Corporate Sector Vulnerabilities: An International Perspective

October 1, 2009

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper focuses on how the exposure to the corporate sector may impact the health of the Australian banking system. It also compares Australian banks with their international peers. Finally, it investigates banks' exposure to credit risk using the new Basel II Pillar 3 disclosure data. The analysis shows that Australian banks have remained very sound by international standards, despite the global financial turmoil. While the international downturn points to several vulnerabilities, the risks from the corporate and household sectors appear to be manageable.

Subject: Banking, Capital adequacy requirements, Corporate sector, Economic sectors, Financial institutions, Financial regulation and supervision, Loans, Mortgages, Residential mortgages

Keywords: AA credit ratings, asset, asset quality, Australia, Australia and New Zealand, bank, bank asset quality, bank capital, banks' capital ratios, bond issuance, Capital adequacy requirements, contingent claim analysis, Corporate sector, disclosure statement, Global, loan portfolio, Loans, Mortgages, Residential mortgages, stress tests, Tier 1, WP

Pages:
22
Volume:
2009
DOI:
https://doi.org/10.5089/9781451873702.001
Issue:
223
Series:
Working Paper No. 2009/223
Stock No:
WPIEA2009223
ISBN:
9781451873702
ISSN:
1018-5941

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