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Should the world be in awe of our Big Four?

If only Wall Street and London had nice, sensible banks like ANZ, CBA, NAB and Westpac – they might not be in such a mess.

Australia’s four pillars are all in the elite group of only 20 banks worldwide that are still AA-rated. So shouldn’t we all be proud of our local banking heroes?

Playing it safe has meant they have comparatively little exposure to the US sub-prime market. And the tough Aussie regulatory environment has kept them away from the worst excesses of investment banking.

Why do you think the Big Four is battling the credit crunch so much better than many banks overseas? Is our banking system something other countries should be trying to copy?

And are there banana skins ahead? Would the banks’ heavy reliance on international wholesale markets top your list of potential troubles? Show your pride below.

Comments (11)

  1. They’ve hardly set the world alight on a global scale – I don’t think most of the world would even know who they are, let alone been in awe of them.

  2. Strong, intelligent regulation is the best thing to be “proud” of – that’s what’s kept these banks away from the dog house.

  3. There is nothing to be in awe of. These 4 they are run like a 3rd world government agencies. Have no creativity and are protected by regulation & from external competition. If all the other countries too decided not to embrace globalisation then their banks too would have been in a great position. Government agencies are more efficient than these banks in so many other countries.

  4. “They are boring” is the new “they rock”

  5. rubbish – the only reason they are continually announcing record profits is that they seem to have a completely free hand in screwing the Australian public – definitely nothing to be proud of

  6. well, at least they’re not bust, laying off staff and being propped up by the govt!!

  7. retail deposits are strong compared to overseas, increasing cash flow and liquidity. market sentiment has smashed everything today, and while it may be true we pay through the nose for various ‘fees’ at our banks- at least they are still operating.

  8. in light of the weekend’s events, they should probably transfer all their money to an aussie bank as the tax payer will bail the big 4 out now!

  9. I think it is far to early to be back slapping at this stage. Our banks are yet to be seriously tested. Let’s reserve judgement and wait and see how sensible the lending practices have been when Australia enters a recession and property prices fall some more. The UK and the US are in recession, Australia at this point is not. Rudd’s first home owners grant increase is a deperate attempt to keep house prices from falling. It will fail.

  10. Just proves that Australia is one of the best countries in the world. I don’t know why we bother having such strong with relationship with countries like America, other than obviously trade. America over the past few years has been a disgrace in relation to foreign affairs and their own economic stability. It is time for us to become leaders as we already proven to the world. While the rest of the world suffer we still remain intact. GO AUSSIE GO!!!

  11. I wonder where our banks would be now if the strong regulatory measures from previous governments were not introduced and more importantly supervised.

    Anthony P Farrugia Reply

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