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MNI BRIEF: Global Financial System Operating Well: RBA Bullock

SYDNEY (MNI)

Financial systems both in Australia and globally have stood up well to the devastating economic impact of the Covid-19 pandemic. Michele Bullock, RBA Assistant Governor (Financial System) said Tuesday, saying banks were well capitalised going into the crisis and have used their substantial buffers to support the economy.

Bullock said the Australian financial system in particular remains profitable, 'notwithstanding substantial loan loss provisions', with their strong capital position allowing them to continue to lend to support the Australian economy.

However, she warns the economic recovery remains unpredictable and uneven so there will be rising business insolvencies and problems for some households in servicing their debts and are areas related to financial stability to watch over the next year.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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