Borrowing warning

Major banks would struggle to cope if borrowing levels recovered, the National Australia Bank has told a Senate inquiry.

Major banks would struggle to cope if borrowing levels recovered, the National Australia Bank has told a Senate inquiry.

NAB's chief financial officer, Mark Joiner, says Australia is still mired in the global financial crisis. He said NAB was "finding it quite difficult" to move away from safe-haven and fixed-income assets like bonds as financial market volatility continued.

Unstable sharemarkets were making investors "fearful" and encouraging them to put their superannuation into cash. He added that wholesale money market volatility and competition for deposits among major banks meant these lenders may not have funds to provide business credit in the event of a borrowing recovery.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles