Moody’s: Australian problem loan ratios increased but overall asset quality remains strong

The US-based rating agency, Moody’s Investor Service, is out with a review report on the Australian banking sector, with the key findings found below.

Australian banks' loan growth has slowed on the housing correction while problem loans have ticked up.

Australian bank problem loan ratios have increased but overall asset quality remains strong.

Loan and deposit growth is slowing, easing funding requirements and lowering funding costs.