Increasingly policy makers are turning their attention to covered bonds, revival of the RMBS market and development of retail bond markets to help reduce funding risk.
The Australian Centre for Financial Studies (ACFS) and KPMG have published the ACFS-KPMG Monograph – The Future of Bank Funding, which looks at the unique nature of bank funding in Australia.
- Bank funding models are unlikely to substantially change and regulatory intervention will make little difference.
- Issues for banks and government in relation to bank funding and questions the sustainability of current funding models.
- Difference in funding patterns between major and second tier banks.
- Heavy reliance of the major Australian banks, in particular on wholesale funding, much of it from overseas.
- Bank funding structures are limited by the national balance of payments positions and the flow of household savings into superannuation funds.