In her address to Ayr Chamber of Commerce Event on 27 October 2020, Assistant Governor (Financial System) Michele Bullock said that banks internationally are in a much stronger position than they were prior to the GFC. Regulatory reforms over the past decade have ensured that banks have increased the amount of capital and liquidity they hold. This enabled them to continue to lend even when the economic outcomes have worsened.
They have been able to support the economy rather than stop loaning and increasing the crisis.
Bullock, in her address also mentioned that Australian Financial System is strong and able to support the economic recovery from the pandemic induced recession.
She said that Australian banks were in a good position coming into this recession.