Of that, a significant proportion has been borrowed by banks, and this is virtually all hedged. Our assessment is that major Australian corporates normally hedge their foreign currency borrowing unless they choose not to because they have a natural hedge through their exports.
2  BIS central bankers’ speeches  Moreover, the Basel III framework, which has recently been released, sets stricter capital and liquidity rules than those that presently exist. The new rules will encourage banks to rely more on deposit-taking, thereby rendering the banking industry of the region more stable.