IMF stress test show Australian banks well placed
(24 September 2012 – Australia) After a series of "stress-tests" the International Monetary Fund (IMF) believes Australia’s banking system is well placed to withstand a United States-style housing crisis.
IMF monetary and capital markets division chief Dr Cheng Hoon Lim said the so-called 'stress tests' had been carried out to see how Australia's banks could cope with a housing collapse like that which hit the US and United Kingdom in the past five years.
'Even in the most extreme scenario the banking system fared pretty well,' she said.
Cheng said the stress tests conducted by the IMF showed Australia's banks would hold up even in the event of a 5 percent drop in GDP and 35 percent fall in house prices.
'Even in the most extreme scenario the banking system fared pretty well,' she said.
Cheng said the stress tests conducted by the IMF showed Australia's banks would hold up even in the event of a 5 percent drop in GDP and 35 percent fall in house prices.
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