Moody's release a report on Australian....>

AUSTRALIA: Moody's release a report on Australian banks, they say that banks in

the region show improved funding and capitalisation levels, but do note that

asset performance has weakened slightly and that past due loans even as impaired

loans have fallen.

- The report notes that while the funding gap narrowed in the most recent

period, it did so at a slower pace. Tanya Tang, a Moody's Analyst, said that

"funding gap will not likely widen meaningfully over the next 12-18 months,

because credit growth should moderate, while wholesale issuance volumes will

likely decline."

- Moody's expect slower housing loan growth in 2018 due to the measures

undertaken by the APRA, they also note subdued corporate loan growth.

- Moody's also note that wholesale debt issuance is expected to decline in 2018

as the banks have already extended their funding tenors ahead of the NFSR

implementation in 2018.