Bank deposits surge twenty per cent

Banks are likely to see an increase in the number of bad loans on their books and falling profits in 2009, but are in generally strong positions to withstand the global financial crisis says the Reserve Bank in its half yearly financial stability review.

Bank deposits grew by 20 per cent in the six months to January, largely as a result of the federal government's band deposit guarantee. The additional deposits and the guarantee had helped banks to raise an additional $85 billion in long term funding on debt markets.

Source: The Australian Financial Review