Has the RBA been hacked or what? More sense from The Bulletin from Kellie Bellrose and David Norman:
Abstract
Australian banks access large and deep foreign funding markets to supplement their domestic funding. Looking at the major banks’ worldwide operations, such offshore funding accounts for about one-third of their assets. This funding is raised in a variety of ways, across several countries and by various entities within the banking groups. While offshore funding can create vulnerabilities, these are appropriately mitigated by various factors. It would nonetheless be desirable for banks to continue to lengthen the maturity of their offshore debt securities.
Background
Large banks source funds from a wide range of countries, in addition to attracting domestic deposits. This enables them to diversify their funding sources, access deeper and more liquid markets and borrow for longer terms than they often can domestically. However, offshore funding can be riskier than domestic funding because it involves more ‘rollover risk’.[1]
