This report analyzes the financing strategies of National Australia Bank (NAB) and Westpac Bank. It examines their sources of funds, including equity, deposits, borrowings, retained profits, bonds, notes, and subordinate debts over a three-year period, highlighting the increasing reliance on debt financing. The report compares the merits and demerits of equity and debt, exploring the implications of each for these banks. It also delves into the application of AASB 137, focusing on provisions, contingent assets, and liabilities, and examines the measurement basis used for different asset categories. The analysis reveals the banks' preference for debt financing and provides insights into their financial reporting practices, drawing on their annual reports to support the findings.
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