*** Australian banks’ funding gap is the money they need to raise from the expensive overseas inter-banking market. It’s expensive because global banks no longer trust each other, as no one knows the extent of bank exposure to high-risk securities.
To determine the size of the Australian funding gap I needed help, and not everyone will agree with the method of calculating the difference between bank loans and deposits (excluding wholesale deposits). But the methodology shows that we have a massive $625 billion funding gap
