Australian banks enjoy "a range of indirect government subsidies", according to an overview of the local industry prepared by the United States' embassy in Canberra in 2009. Wikileaks this week fostered access to this information, contained in a cable, and to many other
US diplomatic cables previously deposited with the US archives.
The primary subsidy in 2009 was the then rent of the Australian government guarantee on wholesale deposits.
According to an embassy analysis, prepared in late 2009, "Australia's dominant big four banks have emerged from the global financial crisis healthy and looking abroad to expand."
"One bank [NAB] has acquired a mid-sized US regional bank [Great Western] and plans to purchase more, while the other banks are looking to China and Indonesia for growth.
"These banks are carrying nearly US$5.2 billion in surplus capital, giving them scope for further expansion and putting them on track to return to record profits in 2010.
"Formerly large domestic banks with relatively small international footprints, the big four are now beginning to behave more globally in the aftermath of the financial crisis."
Separate analysis prepared by the embassy earlier in 2009 concluded that: "It is clear that the Rudd government has provided extensive support because of their critical role in financing Australia's current account deficit."