Trends in the asset-liability structure of Australian banks

This study describes various aspects of the on- and off-balance sheet asset-liability structure of the Australian banking sector, over the period 1975 to 1995, and provides an aggregate perspective of the influence several factors have on the sectors' asset-liability structures. The analysis reveals the dynamic nature of asset-liability structures in Australian banking, and the extensive changes made to these structures over the period. These structures were influenced by changes in financial market volatility, the regulatory structure and the state of the economy, although the most significant changes may be linked more to general macroeconomic conditions (such as the degree of openness of the economy) than to the other factors.