Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Reserve Bank of Australia said domestic banks are "well placed" to meet their funding tasks as they seek to repay funds borrowed from the RBA's Term Funding Facility over the next 18 months, according to the Bank's Financial Stability Review released on Friday.
The RBA said the upcoming wind-down of the Committed Liquidity Facility and the repayment of TFF funds was "sizeable but not unprecedented." It said given the lead times involved, it should not pose a significant challenge for the banking sector assuming they manage their funding requirements "prudently" and there was no "prolonged dislocation" in funding markets.
To make their debt issuance more attractive, Australian banks had issued debt with higher yields and tilted to shorter tenors such as three years and five years. They have also issued secured debt such as covered bonds. Australia's banks have continued to enjoy strong deposit growth, with deposits accounting for almost two-thirds of funding.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.