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National Australia Bank Limited (ASX:NAB) is calling for a more liquid corporate bond market to boost Australia's financial system.
The bank, which has commissioned a series of Australian Centre for Financial Studies reports on corporate debt, says education and legislation to simplify the process of issuing bonds to retail investors would go a long way to help diversify the local market.
The bank released a third report on the corporate debt market last week, which details the various ways in which investors can access debt securities and corporate bonds.
The report also highlighted the limitations of the current market. While the value of long-term non-government debt securities exceeds $450 billion, less than 5 per cent are listed according to RBA estimates.
NAB generated a net profit of $5.46 billion in fiscal 2013.
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