There is also a lot of demand coming from overseas investors...

There is also a lot of demand coming from overseas investors too...

It spans from a simple fact highlighted by the FSB and briefly mentioned in my previous really long Post #:77839377. According to the FSB none of the Australian banks are considered to be globally significant banks. The FSB in Basel, Switzerland. Not to be confused with Russian spy agency. Instead the one affiliated with Bank for International Settlements and G20. https://www.fsb.org/

If you trace all the banking crises, all the way since the last depression, there is one very dirty word - Contagion. The globally significant banks have contagion written all over them. When one gets into trouble they pretty much all are. One globally significant banks asset is another's liability in a mess of tentacles that will rival any Japanese animated movie. If anything can be learned from the GFC it really is the contagion issue.

The biggest banks in the world are from the US. The remainder of the list is made up with from Canada (RBC), India (HDFC) and Australia’s CBA. Despite CBA's being significantly larger and more profitable than the globally significant Deutsche Bank (market capitalisation A$44 billion). It is not considered to be globally significant and have little to no contagion compared to other large banks of the world.


This makes CBA and Australian banks very attractive to overseas investors and they get the added benefit of not having any sovereign risk.