Moody’s: Australian bank performance steady but risks rising in household sector

The US-based ratings agency, Moody’s Investor Service, published its latest report on the Australian economy.

Key Points from the report:

Increasing household leverage and low wage growth are increasing Australia's sensitivity to external shocks

Expects profits growth to moderate, as well as the potential for rising credit costs and slower credit growth

Australian budget in May includes a number of initiatives that if implemented will place incremental pressure on banks profit growth

Australian bank performance steady but risks rising in household sector

Major Banks well positioned to meet net stable funding ratio set by Australian prudential regulation authority coming into effect on 1 Jan