Australian banks’ domestic funding gap continues to narrow

Moody's says that Australian banks' domestic funding gap, the proportion of loans at their domestic operations not funded by customer deposits, continues to narrow. This is credit positive for Australian banks, as a key credit weakness is their structural reliance on wholesale funding, in particular from abroad, to fill the funding gap. Moody's analysis is contained in its report "Australian Bank Funding and Liquidity: Domestic Funding Gap Continues to Narrow."

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