Australia's corporate lending landscape

In the past 18 months, the global financial crisis (GFC) has developed into a global economic crisis as the impacts of financial market instability have flowed through to the real economy, and the situation is still evolving. Both credit and liquidity are tight as banks have scaled back their corpor...

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Bibliographic Details
Published in:InFinance 2009-08, Vol.123 (3), p.40-42
Main Author: Ralston, Deborah
Format: Magazinearticle
Language:English
Subjects:
Australia: Economic conditions
Australian Business Investment Partnership (ABIP)
Australian Office of Financial Management
Balance sheets
Banks
Bond issues
Bond markets
Business finance
Commonwealth Government Guarantee
Debt management
Economic crisis
Economic depression
Economic growth
Financial management
Funding
Global economic crisis, 2008
Global economy
Globalisation
International finance
Investment
Lending
Monetary policy
Participating loans
Securities markets
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Summary:In the past 18 months, the global financial crisis (GFC) has developed into a global economic crisis as the impacts of financial market instability have flowed through to the real economy, and the situation is still evolving. Both credit and liquidity are tight as banks have scaled back their corporate lending portfolios and some foreign lenders have begun to back out of the Australian market. Despite the major banks' ability to raise funds internationally and their healthy capital levels, considerable uncertainty remains in the bank debt market, which is reflected in the fall-off in corporate lending, the reduced tenor of loans and the increased use of restrictive loan conditions. The GFC has highlighted the reliance of Australian corporates on credit markets and their need for a more diverse range of funding options, as well as the fact that certain structures which appear robust during periods of economic growth may not stand up well when conditions deteriorate.
ISSN:1834-4232