The latest bank reporting season has again proven that Australian institutions are among the best capitalised and most effectively regulated in the world, according to the Australian Bankers' Association. The ABA said that the news of bank collapses exceeding 100 in the United States came in stark contrast to Australia's experience, where no ADIs have collapsed under the Australian Prudential Regulation Authority's watch.
The association said that Australian banks had endured the "ultimate stress test" and were still delivering profits to shareholders — albeit lower than in the previous reporting year. Westpac has led the "big four" this reporting season with the announcement of a A$4.6bn profit, just eight per cent lower than its figures from before the global financial crisis.
David Bell, chief executive of the ABA, said that the results from all of the country's banks demonstrated the robustness of the Australian domestic banking sector. It also showed that Australia has avoided
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