Moody's Investors Service released its "Banking System Outlook: Australia" report and noted, "Australia's banks have come through the global financial crisis in strong condition relative to many developed markets. As a consequence, the majority of Australian financial institution ratings have not changed and the system remains one of the highest-rated globally."Moody's has a stable industry outlook for the Australian banking system, reflecting the relatively sound prospects for the domestic economy, improved competitive conditions and signs that bad debt provisioning is peaking. This differs from the negative ratings outlook for Australia's major banks. The negative ratings outlook for the major banks is based on the structural reliance of the large banks on wholesale funding and the assessment that such a funding profile increases their sensitivity to an exogenous shock. The stable industry outlook specifically looks at the likely direction of fundamental credit conditions in the sector over the next 12 to 18 months. The ratings outlooks for the rated regional banks and building societies are overwhelmingly stable.