World banks brace for euro split
(15 December 2011 — Australia) In the event of a break-up of the euro-zone region, Australia’s banks have worked on back-up plans along with banks throughout the rest of the world.
Markets around the world turned sharply negative on Tuesday as investors braced for a possible mass credit-rating downgrade of euro-zone countries as early as this week.
Moody's Investors Service and Fitch Ratings warned that political efforts over the past week to protect the euro had not resolved the immediate dangers of a significant economic downturn in the region and trouble in the banking system.
The lead up to Christmas will see a flurry of bank annual meetings across Australia, with executives expected to sound a note of caution about Europe's unfolding debt crisis.
Westpac chief executive Gail Kelly, who fronts shareholders this morning in Sydney, has said her bank has been operating on a ''conservative footing'' in light of the problems.
National Australia Bank (NAB) chief executive Cameron Clyne will address shareholders tomorrow and ANZ will meet investors on Friday.
Australian banks have also been reducing their already low holdings in euro-denominated assets. NAB, which owns British-based Clydesdale Bank, is believed to be among those most advanced with plans, given any fractures in the euro would jolt Britain's finance sector.
Moody's Investors Service and Fitch Ratings warned that political efforts over the past week to protect the euro had not resolved the immediate dangers of a significant economic downturn in the region and trouble in the banking system.
The lead up to Christmas will see a flurry of bank annual meetings across Australia, with executives expected to sound a note of caution about Europe's unfolding debt crisis.
Westpac chief executive Gail Kelly, who fronts shareholders this morning in Sydney, has said her bank has been operating on a ''conservative footing'' in light of the problems.
National Australia Bank (NAB) chief executive Cameron Clyne will address shareholders tomorrow and ANZ will meet investors on Friday.
Australian banks have also been reducing their already low holdings in euro-denominated assets. NAB, which owns British-based Clydesdale Bank, is believed to be among those most advanced with plans, given any fractures in the euro would jolt Britain's finance sector.
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