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Aussie banks borrow offshore like drunken sailors

Thursday 26 March 2015

The release of the Australian Bureau of Statistics (ABS) National Financial Accounts yesterday revealed a large $33 billion (5%) jump in Australian banks’ gross external liabilities (offshore borrowings) in the December quarter, with borrowings now at all time record levels.

This surge in offshore borrowings was driven by increases in One Name Paper (+$17 billion) which is debt under one year maturity, Bonds (+$13 billion) and Deposits (+$10 billion), partly offset by falling loans (-$7 billion), as shown in the next chart:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.