By ETHAN Markoff
November 26, 2011
EURO CRISIS NEWS - The eurozone crisis is now paving its way in biting hard the local banks in Australia. It will be a headache soon for the Gillard government while the major Australian banks have already escalated warnings.
In recent weeks the banks have experienced increasing difficulties in borrowing money from the international markets, and are offering higher rates to investors to get funding and then lend it to mortgage-holders.
The National Australia Bank earlier agreed the government, citing increase in funding costs, when it passed 20 points of the Reserve Bank's 25-point cut in the official rates.
Warning has also been given by former bank executives and industry analysts that the future rate cuts is being further undermined by Europe conditions. They cited that Germany, AAA-rated, faced problems this week in raising funds from bonds investors.
Mike Smith, ANZ chief executive said that the country is in the middle of serious crisis presently.
Meanwhile, the Australian stockmarket slipped down yesterday for sixth consecutive day. S&P/ASX 200 is down 1.5% and closed at 3984.30.
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| ANZ Chief Executive Mike Smith |
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| Australia Stock Market |
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