Interesting article posted on zerohedge.com by Tyler Durben.
And since we don’t have immediate access to the article, we leave it to Bloomberg First Word to describe for us what the article says:
- Australian Prudential Regulation Authority envision worst-case scenario of 12% unemployment, 30% drop in house prices, 40% fall in commercial property values, AFR says
- Banks will assume that write-offs, other mitigation measures are unavailable; later stress tests might allow for such steps, AFR says
- Australia’s banks have A$87.2b of exposure to Europe, or 2.7% of assets, with A$74.6b of it mostly tied to bank borrowers in France, Germany, Netherlands, AFR says, citing RBA statistics
Find the rest of the article on the link below and more interesting material on zerohedge.com