- Next month will get to see just how much a handful of risky, ill judged and very large loans have damaged our four major banks. It will more than $1 billion.
While it sounds alarming, it isn’t. But it was mostly avoidable.
The reason we shouldn’t be worried about these big ticket bank provisions is that they don’t appear to be widespread and other than the problem loans to mining companies and mining services companies, they are not the result of a structural weakness in the economy.
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Mark Mentha has been appointed administrator of failed steel and iron ore company Arrium. Photo: Luis Ascui