Stuffed Aussie banks retreat from offshore debt


By Leith van Onselen

The Australian Bureau of Statistics (ABS) yesterday released its National Financial Accounts for the March quarter, which revealed a 2.9% quarterly decline in Australian banks’ gross external liabilities (offshore borrowings), and a 0.2% decrease over the year.

One Name Paper (-$21 billion), Bonds (-$10 billion) and Deposits (-$9 billion) drove the quarterly decline in offshore borrowings by the banks over the March quarter, partly offset by a $10 billion rise in loans and a $4 billion increase in 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.