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ISCOVER
Staff Reporter
Making headlines today, the Sydney Morning Herald has reported that Australia’s banks will need to borrow more than $140 billion from local and offshore markets over the next year to help fund their lending books.
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According to the paper, demand for credit continues to outstrip growth in deposits, which will put pressure on the banks to raise interest rates.
Commonwealth Bank’s chief financial officer David Craig told the paper that the bank’s reliance on wholesale funds was a long term structural issue for the nation.
Mr Craig said the big bank’s funding task is greater than the domestic capacity to fund. As such, the bank will have to fund offshore which will lift funding costs.
