The downgrade warning on Australia's four major banks sent out on Wednesday by Moody's will leave little effect on their standing, according to analysts, who insisted that concerns over the sluggish recovery of credit demands have overshadowed the banks' financing issues.

Moody's announced a review yesterday on the country's giant bank, namely ANZ Banking Group, Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac, with corresponding caution of possible downgrades owing to the four's over-dependence on offshore loan financing scheme.

However, market analysts are in agreement that the move, even when pressed on by Moody's, would not cause a big impact on the giant banks, a general sentiment apparently shared by the stock market as bank shares remain steady during trading despite the announcement.

Analysts said that the banking industry in Australia, specifically the major players, have been effectively dealing with their deposit issues while the sector's declining loan movements, which slid by up to 10 percent in the past two years, is being addressed too.

On the part of Commonwealth Bank, company treasurer Lyn Cobley said in a statement on Thursday that "we have increased customer deposits and long-term wholesale debt," and at the same time "we have increased the weighted average tenor significantly increased our holdings of liquid assets."

Such measures undertaken by CBA, according to Cobley, "places us in a strong position from a funding perspective for the future," which is a position shared by the three other major banks.

Also, the country's major lenders are optimistic that the billions of dollars contracted for funding services should not be a cause for concerns anymore since funding costs have eased down substantially over the past few months.

While banks are bracing for a slowdown in lending growth as corporate borrowers focus on debt repayment, the rising savings rate offers a clear advantage for lenders to strengthen their deposit reserves in light of the rush by consumers to save more following the slow disappearance of the effects of the global financial crisis.