Michele Bullock, Assistant Governor (Financial System) speaking

  • financial health of businesses looks sound, no threat to banks
  • says retailers and investors face number of risks given intense competition
  • currently no strong evidence of widespread financial vulnerability in retail sector
  • says unlisted retailers tend to have more debt, making them more vulnerable
  • difficulties in retail sector unlikely to pose risk to the banking sector
  • says profitability in mining sector highest in the past 10 years
  • says mining firms' balance sheets appear well placed to absorb shocks
  • says small businesses face tighter credit conditions
  • banks dealing with mortgage arrears in some regions, not a threat to stability

Headlines above via Reuters from the speech. Bullock not sounding alarm bells really, plenty of positive notes amongst the negatives.

Stay tuned for the Q&A to follow

Full text:

Michele Bullock, Assistant Governor (Financial System) speaking