Australian banks Australian interest rates

Banks begin to “throttle credit”

Tuesday, 10 March 2020

Via Ian Rogers at Banking Day who has gotten the memo that others dare not read:

The pandemic is a function of the financial system, and the Australian recession of 2020 and 2021 will be a self-inflicted blow on banks.

For CBA, NAB and the lot of them, credit losses will be the worst since the recession of 30 years ago. They may exceed that.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.