According to the Reserved Bank of Australia (2009), the country was not materially affected of the global financial crisis. Based on the record, dated on September 2008, the local banks have met the level of performance. It is also concluded that they perform banking strategy better than with offshore banks because they come up with a more systematic financial scheme.
With the previous financial record, they’ve manage to assess the difference of their economy and the factors affecting the entire financial status. Although, over half a year, the net return profit of bank’s equity is decreased to approximately 13.5 percent, they still manage to overcome the problems. The reason of declining profits, is due to amendment of the bank loan policy, in particular to unidentified debtors. But despite policy adjustment, the banks have manage to stabilize firmly and develop a comprehensive banking strategies to maintain their financial balance. They invite local and foreign investors to engage into business and tendency of starting on the debt funding.
Apart from that, the guidelines for recent mergers are also amended. Thus, more investors are delighted and decided to re-invest again. Therefore, an increased of “higher-rated banks” in the country, and debt funding support as well. With regard to housing loans and other financial loan institutions, there are slight increased of rates. However, it does not greatly gives impact to the overall living standards of the citizen.
On top of all, the “monetary policy” itself is also amended. The interest rate payments are reduced from 15 percent recorded in 2008 to approximately ten percent. It is also recorded that the other funding are come from tax cuts and government supports.
Work Cited
Reserved Bank of Australia, 2009. Financial Statement Review :2009. [Online] Available at: http://www.rba.gov.au/publications/fsr/2009/sep/html/overview.html[Accessed 15 May 2013].
