Aussie banks guzzle offshore debt anew

Thursday 29 September 2016

Yesterday, the Australian Bureau of Statistics (ABS) released its National Financial Accounts for the June quarter, which revealed a large $31.8 billion (4%) rise in Australian banks’ gross external liabilities (offshore borrowings) in the June quarter, with borrowings now only marginally below December’s record high.

Foreign deposits (+$18 billion) and bonds issued offshore (+$13 billion) drove the quarterly lift on offshore borrowings by the banks:

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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.