Australian banks world’s most profitable, but still vulnerable: BIS

Australian banks world’s most profitable, but still vulnerable: BIS

The Bank for International Settlements has found that Australia’s big four lenders are again the most profitable in the developed world, but the organisation says rising interest rates will make our banks more unstable.

It says record low interest rates and monetary stimulus programs, including the US Fed’s money printing program, have fuelled massive rises in global share markets as investors snap up cheap loans.

The BIS says that if Australia’s key interest rate returns to 5 per cent, the portion of people’s incomes spent covering loans will rise steeply too.

Read more here: ABC

    

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