Australia govt says local banks ride out global storm

CANBERRA: Australian banks can withstand any prolonged turmoil in offshore capital markets and are in a much stronger position than they were ahead of the 2008-2009 global financial crisis, Australian Treasurer Wayne Swan said on Tuesday.

In a speech to parliament, Swan also voiced confidence that the nation's massive pipeline of mining and energy projects would remain intact despite market uncertainties over the impact of Europe's debt crisis and a shaky US economy.

"They are very long-term investments, driven by investment decisions over time horizons well beyond the current market turmoil, and so are unlikely to be knocked off course by recent events," he said, noting 40 percent of Australia's A$430 billion ($450 billion) pipeline of resources projects was already under construction.

Copyright Reuters, 2011