RBA Says Banks Face Weaker Credit, Assets Than Pre-Lehman

Australian banks face slower credit growth and weaker asset quality than prior to the global credit crunch sparked by the collapse of Lehman Brothers Holdings Inc. in 2008.

While the nation’s lenders are better placed to cope with market shocks than three years ago, the proportion of non-performing assets on their balance sheets remains close to its recent peak, the Reserve Bank of Australia said in its financial stability review released today in Sydney.