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Australia Banks Hoard Cash, Set Up Swapping Program

Posted on June 27, 2008

Hoarding cash is catching on. The US, EU, UK, and now Australia banks are all in on the act. In response the Oz central bank .... drum roll please .... institutes a swapping mechanism.Let's take a look at how Oz Banks prepare for worst.The RBA's assistant governor of financial markets, Guy Debelle, has revealed eight Australian banks had taken the advice of the central bank and APRA, the prudential agency, to package and securitise residential mortgages which had been held on their balance sheets.The move would allow the banks to effectively swap the residential mortgage-backed securities (RMB...

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central bank , greenspan , interest rates