Australian Bank and Corporate Sector Vulnerabilities: An International Perspective
IMF Working Papers, October 1, 2009
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- Australian Bank and Corporate Sector Vulnerabilities: An International Perspective
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Bibliographic details
- Authors: Elöd Takáts, Patrizia Tumbarello
- Published: October 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451873702.001
Objective and scope
- Focuses on how exposure to the corporate sector may impact the health of the Australian banking system.
- Compares Australian banks with their international peers.
- Investigates banks' exposure to credit risk using the new Basel II Pillar 3 disclosure data.
- Emphasizes analysis in the context of the global financial turmoil.
Key findings and conclusions
- Australian banks have remained very sound by international standards, despite the global financial turmoil.
- While the international downturn points to several vulnerabilities, the risks from the corporate and household sectors appear to be manageable.
Methodology and data sources
- Uses Basel II Pillar 3 disclosure data to investigate banks' exposure to credit risk.
- Comparative analysis against international peers (specific datasets and models are described in the paper).
Policy implications and areas of concern
- The paper highlights vulnerabilities revealed by the international downturn but assesses that corporate and household sector risks are manageable for Australia.
- Implicit recommendations relate to continued monitoring of bank exposures to the corporate sector and use of enhanced disclosure data to assess credit risk (detailed policy recommendations are provided in the paper).
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- _wp09223 - References