As credit tightens, gluttonous Aussie banks binge on offshore debt

Tuesday 3 July 2018

The Australian Bureau of Statistics (ABS) last week released its National Financial Accounts for the March quarter, which revealed a large 4.8% quarterly rise in Australian banks’ gross external liabilities (offshore borrowings), and a significant 9.8% increase over the year.

Bonds (+$24 billion) and One Name Paper (+$12 billion) drove the quarterly rise on offshore borrowings by the banks over the March quarter, partly offset by a $5 billion rise decrease in Deposits:

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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.