With results indicate that Commonwealth Bank 's bad loans have suddenly jumped and Westpac , who has increased its bad debt charges to a six - fold high in the first half , primarily due to the downturn in the banking sector , there is a real cause for problems for Australia 's economy . Furthermore , with the economy falling below trend levels , 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.