Our banks never in doubt says RBA

The governor of the Reserve Bank Glenn Stevens said his heart was in his mouth when the Aussie dollar began to dive following his decision to slash official interest rates by one per cent in the midst of the global financial crisis. However he never had any doubt that Australia’s banks were safe and solvent at all times.

“There was a global panic in very important financial markets and everybody gets affected when there's a panic, even if you are sound,” Mr Stevens said. “I never had any doubts about the solvency of our banks,” he said.

“We said very early on in our crisis that our banks were in a different class to the ones that were going under elsewhere. We had confidence to say that because we had confidence they had been well supervised by (the Australian Prudential Regulation Authority) APRA and, I think, well managed.”

Source: Courier Mail