Should the world be in awe of our Big Four?

8 October 2008

1 minute read

Should the world be in awe of our Big Four?

If only Wall Street and London had nice, sensible banks like ANZ, CBA, NAB and Westpac - they might not be in such a mess.

Australia's four pillars are all in the elite group of only 20 banks worldwide that are still AA-rated. So shouldn't we all be proud of our local banking heroes?

Playing it safe has meant they have comparatively little exposure to the US sub-prime market. And the tough Aussie regulatory environment has kept them away from the worst excesses of investment banking.

Why do you think the Big Four is battling the credit crunch so much better than many banks overseas? Is our banking system something other countries should be trying to copy?

And are there banana skins ahead? Would the banks' heavy reliance on international wholesale markets top your list of potential troubles? Show your pride below.

AUTHOReFinancialCareers Australia

Insider Comment

An
Anthony P Farrugia
16 October 2008
I wonder where our banks would be now if the strong regulatory measures from previous governments were not introduced and more importantly supervised.
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Co
Costa
16 October 2008
Just proves that Australia is one of the best countries in the world. I don't know why we bother having such strong with relationship with countries like America, other than obviously trade. America over the past few years has been a disgrace in relation to foreign affairs and their own economic stability. It is time for us to become leaders as we already proven to the world. While the rest of the world suffer we still remain intact. GO AUSSIE GO!!!
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Tr
Troy
15 October 2008
I think it is far to early to be back slapping at this stage. Our banks are yet to be seriously tested. Let's reserve judgement and wait and see how sensible the lending practices have been when Australia enters a recession and property prices fall some more. The UK and the US are in recession, Australia at this point is not. Rudd's first home owners grant increase is a deperate attempt to keep house prices from falling. It will fail.
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Ri
Rice
13 October 2008
in light of the weekend's events, they should probably transfer all their money to an aussie bank as the tax payer will bail the big 4 out now!
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ms
ms
11 October 2008
retail deposits are strong compared to overseas, increasing cash flow and liquidity. market sentiment has smashed everything today, and while it may be true we pay through the nose for various 'fees' at our banks- at least they are still operating.
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