It has become apparent over the last few months that Australian banks have not escaped the global banking crisis. In fact Australia has suffered significantly from the drop off in demand of raw materials from the industrial machine that is China.
China had been the engine that has driven huge growth in Australia’s raw material export market for primary resources such as coal and copper ore. Simplistically, one could argue that the fall in consumer demand in the USA has affected China, which in turn has affected the Australian economy and thus the Australian banks.
Mighty Australian banks such, as the Commonwealth Bank, will certainly be in for a tough time in 2009, as will most other banks across the globe.
Related posts:
