Greek tragedy could impact pricing
(29 April 2010 – Australia) The chief executive officer of the Commonwealth Bank of Australia has spoken of the possible ripple-on effects of the Greek financial situation, saying that it may have an influence on pricing and credit availability in the short term.
The bank’s chief, Ralph Norris confirmed that the bank didn’t have any exposure to Greece or any Greek banks.
The current volatility in markets is something that has happened on a regular basis over the last two to three years and this is another incident, Mr Norris added.
It certainly would have a potential impact on pricing and availability in the short-term but Commonwealth Bank does not see it impacting the bank at this point, the bank’s head highlighted.
Mr Norris said the bank has completed its wholesale funding task for this year and was advanced funded for the coming financial year, however noted that funding costs had continued to rise and expect this trend to continue for the next year or so.
The Australian banking industry has obviously weathered the global financial crisis well, Mr Norris said.
However he noted that the way the things had been handled in the past were not necessarily the recipe for the future success of business and that adaption of the Australian banking industry was paramount.
The current volatility in markets is something that has happened on a regular basis over the last two to three years and this is another incident, Mr Norris added.
It certainly would have a potential impact on pricing and availability in the short-term but Commonwealth Bank does not see it impacting the bank at this point, the bank’s head highlighted.
Mr Norris said the bank has completed its wholesale funding task for this year and was advanced funded for the coming financial year, however noted that funding costs had continued to rise and expect this trend to continue for the next year or so.
The Australian banking industry has obviously weathered the global financial crisis well, Mr Norris said.
However he noted that the way the things had been handled in the past were not necessarily the recipe for the future success of business and that adaption of the Australian banking industry was paramount.
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