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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
