More NewsAustralian Bank Funding and Capital Improvements to Slow, says Fitch

Australian Bank Funding and Capital Improvements to Slow, says Fitch

Australian bank funding and liquidity improvements are likely to continue, albeit at a reduced pace, according to Fitch Ratings.

However, the credit ratings agency (CRA) adds that a sharp increase in demand for credit may pressure the ability of banks to fund the growth without potentially reversing some of the recent gains.

Fitch notes that Australian banks have largely addressed the capital and liquidity coverage ratio requirements of the Basel III capital adequacy regime, following significant strengthening post-2008.

An increase in deposit gathering and lengthening of wholesale funding duration drove stable funding (customer deposits plus long-term wholesale funding) to 75% of total funding at end-March 2014, up from 62% in 2008.

Further funding improvements are likely to be more nuanced, with a greater emphasis on longer-term funding rather than deposits, while any additional capital requirements are likely to be achieved through retained earnings.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

4w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha