As credit tightens, Aussie banks binge on offshore bonds

Thursday 13 December 2018

The Australian Bureau of Statistics (ABS) has released its National Financial Accounts for the September quarter, which revealed a 1.8% quarterly decline in Australian banks’ gross external liabilities (offshore borrowings), but a large 7.6% increase over the year.

One Name Paper (-$24 billion) and Deposits (-$10 billion) drove the quarterly decline in offshore borrowings by the banks over the September quarter, partly offset by a $9 billion rise Bonds and a $4 billion increase in both Loans and Other:

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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.