Foreign currency liabilities have increased in importance as a source of funds for Australian banks.Which of the following statements is NOT a major reason?
i.deregulation of the foreign exchange market
ii.diversification of funding sources
iii.demand from multinational corporate clients
iv.internationalisation of global financial markets
v.avoidance of the non-callable deposit prudential requirement
vi.expansion of banks' asset-base denominated in foreign currencies

Question

Quizplus · Accepted Answer

Avoidance of the non-callable deposit prudential requirement is not a major reason for the increase in foreign currency liabilities. The other reasons listed are valid and have contributed to this trend in Australian banks.

Foreign Currency Liabilities Have Increased in Importance as a Source