Moody’s: Australian banks' balance sheets remain solid

The US credit ratings agency, Moody’s Investors Service, published their report on Australian banks this Thursday.

Key Findings:

Australian banks' balance sheets remain solid

But asset quality expected to come under gradual pressure

Asset quality is expected to gradually weaken from potential further stress in resources-related sectors and regions

Banks are increasingly well capitalized to absorb any adverse shocks, with majors having raised a little over AUD 19bln of capital in 2015

Liquidity has stabilized at much higher level, following the implementation of the Basel liquidity coverage ratio