With results revealing that Westpac bad loans have suddenly jumped and Commonwealth Bank's, who has increased its bad debt charges to a six-year high in the first half, primarily due to the downturn in the mining sector, there is a real cause for concern for Australia's banks. Furthermore, with the economy continuing below trend growth, bad debts are expected to increase.
With results revealing that Commonwealth Bank's bad loans have suddenly jumped and Westpac, who has increased its bad debt charges to a six-year high in the first half, primarily due to the downturn in the mining sector, there is a real cause for concern for Australia's banks. Furthermore, with the economy continuing below trend growth, bad debts are expected to increase.