RBA: Australia's financial system is resilient and well placed to fight coronavirus
|Reserve Bank of Australia (RBA) said on Monday that Australia's financial system is resilient and it is well placed to deal with the effects of COVID-19.
Further points
Regulators and government working closely together.
Banking system is well capitalized and is in a strong liquidity position.
Adds AUD $5.9 bln to banking system through market repo operations.
Meanwhile, Australia's Council of Financial Regulators (CFR) said the substantial financial buffers are available to be drawn down if required to support the economy.
Additional quotes
Trading liquidity has deteriorated in some markets and financial institutions are having to adjust to a more volatile environment.
RBA will be conducting one-month and three-month repurchase (repo) operations until further notice.
RBA will conduct repo operations of six-months maturity or longer at least weekly.
APRA ensuring banks pre-position themselves to take advantage of the RBA’s supportive measures.
APRA and ASIC will take account of the circumstances in which lenders, acting reasonably, are currently operating.
Emphasising the importance of a continuing supply of credit, particularly to small businesses.
Meeting with major lenders later this week.
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