ANZ says no sign of credit crunch in Australia

SYDNEY: Australia and New Zealand Banking Group Chief Executive Mike Smith said he did not see a credit crunch emerging in Australia at present.

Australian banks may need to tighten credit if European funding markets stayed shut for more than six months, but such an outcome was unlikely, Smith told reporters on Friday after the bank's annual shareholders meeting.

Earlier ANZ, Australia's fourth largest bank, said it had made a reasonable start to the 2012 financial year, though it joined rivals by warning that high funding costs were putting pressure on margin.