Australian Banking Industry in-depth Analysis

AUSTRALIAN ECONOMY
Australian Banking Industry in-depth Analysis

AUSTRALIAN ECONOMY
Executive Summary
The following report is on in depth analysis of the banking industry of Australia. The report
contains details of the banking industry and the companies (Public and Private) and their
contribution to the industry and how much does it contributes to the GDP. The exchange rate of
the currency and how its deviation does affects the economy. Imports from China and its affects
as well as, the rate of unemployment in the economy and how it affects the economy is discussed
below. Moreover, the Government of Australia and their part of regulatory framework is also
discussed. The contribution of the banking industry in the economy is also given to analyse
growth of GDP and comparison between the companies. The insights and analysis after the
assessments is outlined briefly and the learning and recommendation is given based on the
findings.

AUSTRALIAN ECONOMY
Table of Contents
A. Estimation of banking industry’s contribution in Annual GDP. What proportion of GDP
does this represent? Explanation of the data Models.......................................................................4
B. Industry’s relationship with Government of Australia.........................................................6
C. Brief explanation..................................................................................................................8
 Impact of value of Australian dollar(AUD) decreases by 10% against other key currencies
8
 Impact of China reduces imports by 10%.............................................................................9
 Impact of Australia’s rate of unemployment increases to 10%..........................................11
D. Outcome all of these changes happen within one year?.....................................................12
E. Conclusion..............................................................................................................................13
References......................................................................................................................................17

AUSTRALIAN ECONOMY
A. Estimation of banking industry’s contribution in Annual GDP. What proportion of
GDP does this represent? Explanation of the data Models
The banking system in Australia contributes to the growth of the Australian economy and
acts as important contributor of the annual growth of Australian GDP. GDP defines the
growth of an economy with respect to the monetary value of the products and services
produced by the economy. Creating jobs, injecting billions of dollars, and paying dividends,
interests and taxes are the some of the steps in contributing to the Australian economy. With
around 450,000 people, approximately 16.7 billion in paid taxes, 6 billion in dividends and
interest payments, the banks acquires more than 75% of the all banking operations in
Australia (Rba.gov.au, 2019). The big four banks (Westpac, National Australian Bank,
Australia and New Zealand Banking Group and Commonwealth bank) in Australia pays 45%
of the corporate tax in Australia. As one of the growing economy in the world the Australian
people enjoy a good standard of living. In 2017-18 the businesses with the biggest offer of
current value net esteem included (at basic prices) were Financial and Insurance Services
(9.5%), Mining (8.8%) and Construction (8.1%) (Rba.gov.au, 2019).
The GDP annual growth rate of Australia is 2.30% as of 4th quarter of 2018 calculation.