Ive been trying to find (with little success) which Australian banks would be safest to keep your cash in incase of a large Financial crash, banks with least Leverage, Least exposure to no Deposit/higer risk mortgages, Least foreign currency exposure, best Liquidity etc etc. Basically which banks would survive a 1930s style Crash followed by deflation, the worst case scenario!
The IMF recently made this warning to Aussie banks...
"FINANCIAL trouble in New Zealand would quickly spread to Australia through the banking system, potentially cutting Australian banks off from international funding, according to International Monetary Fund.
The IMF has identified Australian banks' exposure to New Zealand, lower lending standards, a high exposure to highly-geared households and reliance on international funding as the main risks to Australia's banks.
"Contagion effects from New Zealand banks to Australian banks could be more severe than indicated by the relative size of their balance sheets," the IMF warned."
I note last year that Costello announced that a Limited Gurantee scheme for depositor protection is to be introduced, but not sure if it has been? Which makes me think that a huge Crash is atleast considered by the Government.
The US has recently had thousands of defaults and Bankruptcies from their Subprime (low doc Liar Loans) market and a bunch of Mortgage company bankrupties with many more expected to follow this year as the interest rates on 100s of thousands of these loans reset to higher interest rates. Unlikely as it is a crash in their housing Market and Share market could be catastrophic with global implications.
So what do you reckon, which is Australias Safest Bank?