Australian Banks Could See Cycle of Business Insolvencies -- Market Talk

Dow Jones05-26 09:26

0126 GMT - Australian banks could see a sustained cycle of business insolvencies lasting two or three years, UBS analysts say. Citing feedback from insolvency and restructuring advisors, the UBS analysts say the advisors anticipate a period of solid activity rather than catastrophic volumes. There are no signs of insolvency firms hiring staff in anticipation of increased activity, the investment bank's analysts add in a note. They add that advisors warn that inflation is not being fully captured by official data, particularly for construction and logistics companies. The analysts think major banks could have to further raise credit impairments and provisioning. (stuart.condie@wsj.com)

 

(END) Dow Jones Newswires

May 25, 2026 21:26 ET (01:26 GMT)

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