The RBA’s latest Financial Stability Review was released today.
It’s a 66-page document of the RBA’s analysis on where the Australian and global financial systems sit at the moment. It looks at the recent history and experience of global finance, markets and banking and it analyses the risks that may exist and the steps taken to mitigate them.
Today we learnt that the RBA sees some real risks in Australia’s apartment boom. We also discovered that Australian banks had fallen into some rotten lending practices before APRA stepped in.
But the RBA released an infographic to accompany its mammoth report which neatly summarises what the bank thinks you need to know about Australia’s financial system.
If you’re wondering why milk prices, not iron ore, feature so prominently the RBA says it’s because, “the deterioration in New Zealand’s dairy sector in response to low global milk prices will be an area to watch, given the size of the Australian bank subsidiaries’ exposures to that sector.”
Here’s the infographic: