By Ken Atchison, Principal, Atchison Consultants
Critical for the Australian recovery from the recession, driven by coronavirus, is growth in bank credit. While Australia faces a health crisis and an economic crisis, avoidance of a financial crisis is pre-eminent in the policy. Sustained profitability of the banks is required both for growth in credit and continued dividend distributions for investors. The RBA and APRA have made it clear that capital and liquidity buffers are available...