In a speech made on Monday morning to KangaNews in Sydney, Mr Kent acknowledged"volatility in Australian financial markets has picked up" but remained confident in local institutions.
Reserve Bank assistant governor Chris Kent has claimed Australian banks are"unquestionably strong" despite global turmoil which forced the merger of UBS and Credit Suisse on Monday. Picture: News Corp Australia Credit Suisse had been marred by recent scandals including the collapse of major clients Greensill Capital and Archegos Capital Management in 2021, making it a target for nervous investors seeking to protect their money.
Before its takeover, Credit Suisse held about half-a-trillion in assets from investors all over the globe and a complete collapse would have wiped billions of dollars of value from markets including Australia. "It's important to put this in some perspective. The banking sector is in much stronger shape globally than it was 10 years ago. Regulators, markets, and banks have put a lot more capital in place and are more stringent on liquidity," he said.
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