Australian banks pull billions from Spain
(21 September 2011 – Australia) Australian banks have pulled billions of dollars in funds from Spain and reducing lending to France in a bid to cut exposure to the European troubles.
The latest figures that cover public and private debt from the Swiss-based Bank for International Settlements still show Australian lenders are still prepared to do business with Italy, even as it battles serious debt strains.
The most dramatic change for Australian banks is their exposure to Spain, which has been cut to zero from US$1.69 billion (A$1.65 billion) this time last year. A further US$71 million has been pulled from Portugal.
The Australian banking system's exposure to France peaked at more than US$10.6 billion in the December quarter, but the latest figures which cover the March quarter show this has since fallen to US$9.2 billion. No Australian banks have lending exposure to Greece, but loans to Italy have increased to $US696 million from US$586 million in the December quarter.
The most dramatic change for Australian banks is their exposure to Spain, which has been cut to zero from US$1.69 billion (A$1.65 billion) this time last year. A further US$71 million has been pulled from Portugal.
The Australian banking system's exposure to France peaked at more than US$10.6 billion in the December quarter, but the latest figures which cover the March quarter show this has since fallen to US$9.2 billion. No Australian banks have lending exposure to Greece, but loans to Italy have increased to $US696 million from US$586 million in the December quarter.
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