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Australia Monitors Global Financial Turmoil Amid Bank Crises

Amid global financial turmoil, Australia closely monitors the situations of Credit Suisse and US banks, with Treasurer Jim Chalmers emphasizing the nation's economic resilience.

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According to Treasurer Jim Chalmers, Australia is closely monitoring the ongoing global financial turmoil, including the situations involving Swiss lender Credit Suisse and some American banks. Chalmers informed ABC Radio that Australian authorities are monitoring developments such as those involving Silicon Valley Bank and the actions taken by US officials and Credit Suisse.

Regular Updates on Global Financial Issues

Chalmers revealed that he receives at least two daily updates from Australian authorities on the most recent global financial concerns. This level of vigilance is critical given the widespread implications of the current banking crises.

US Banks Support First Republic Bank

In response to the crisis, large US banks provided $30 billion to First Republic Bank on Thursday, offering a lifeline to the embattled lender. This move followed the collapse of two mid-sized US banks over the past week, which has had a domino effect on the global financial industry.

Credit Suisse Receives Assistance

Credit Suisse was affected by the collapse of Silicon Valley Bank, forcing the Swiss bank to borrow up to $54 billion from Switzerland's central bank to bolster liquidity. Chalmers noted that concerns have eased after Credit Suisse received assistance from the Swiss central bank and US authorities guaranteed all deposit accounts at Silicon Valley Bank.

Australia's Financial System Resilience

Despite the calming effect of these interventions, vulnerability, and uncertainty continue to permeate the global financial system. However, Chalmers assured that Australia's banking system is well-capitalized, highly liquid, and well-regulated, positioning the country to weather the volatility.