Saturday, July 26, 2008
NAB’s other $13 billion of similar derivative exposures, as well as the billions of dollars of exposure the other banks have to these risky instruments.
NATIONAL Australia Bank's write-down of $830 million has put the spotlight on the dangerous risks the banks have taken with customers' deposits.1per cent defaulted, it would wipe out Australia's banking system.
According to the latest Reserve Bank Bulletin, the Australian banking sector's exposure to derivatives was $9.8 trillion at March 31, compared with almost $13 trillion three months earlier. While most of this isn't risky, if 1per cent defaulted, it would wipe out Australia's banking system.