There were 668 press releases posted in the last 24 hours and 166,554 in the last 365 days.

Australia : Financial Sector Assessment Program-Technical Note-Stress Testing the Banking Sector and Systemic Risk Analysis


International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

February 21, 2019

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file


Bank capital levels have been strengthened and funding risks have also been reduced in recent years, while financial supervision and systemic risk oversight have been enhanced. Additionally, authorities have taken successful policy actions to moderate rapid growth in riskier segments of the mortgage market. At the same time, the banking system faces several challenges. Real estate valuations appear stretched while household leverage is at record highs, posing significant macrofinancial risks. A sustained period of economic growth, low policy rates, tax incentives and abundant credit have fueled the rise in household debt, pushing household debt-to-income to nearly 200 percent, which is among the highest in the world. The largest banks remain dependent on overseas wholesale funding, though reliance has declined in recent years. The ongoing Royal Commission (RC) inquiry is revealing a pattern of widespread misconduct in the financial services industry, including at the four major banks that hold some 80 percent of banking system assets.

EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.