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MENAFN - - 28/03/2012

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(MENAFN) The Reserve Bank of Australia (RBA) said that the Australian banking system is in a good shape due to healthier global economy, reported Xinhua News.

The central bank added that lending operations by the European Central Bank (ECB) managed to lower funding risks for EU banks and increase liquidity.

It also said that Australia's larger banks were in a better place than a few years ago to deal with the tighter funding conditions.

On the other hand, it said that the country's household sector continued to be cautious in spending and the saving rate was higher than the levels recorded in the 1990s and early to mid 2000s.

It is worth noting that the constant difficulties in Europe in addition to the passive outlook for global growth will continue to pose risks to global financial stability in the coming period, according to the RBA.

 






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