The Australian Bankers Association is endorsing statements by the Reserve Bank governor that the Australian economy is in a good position to weather heightened global uncertainty, partly due to solid, safe and healthy banks.

Appearing Friday morning in front of the House of Representatives Standing Committee on Economics, RBA Gov. Glenn Stevens said:

“In summary, there is a heightened degree of uncertainty at present. There are major challenges in the global economy and significant forces at work in the Australian economy. But at this point in time, our terms of trade are at a record high, while our unemployment rate remains low. Inflation bears careful watching, but we can keep it under control.

“Our banks are strong, our currency is sound and our sovereign credit position is in the international top tier. Consumer ‘caution,’ while making life hard for the retail sector, is also building resilience in household balance sheets. If we are entering another period of weaker international conditions, this is a pretty good starting point from which to do so.”

Steven Münchenberg, chief executive of the ABA, said, “A clear lesson from the global financial crisis is that countries with solid, healthy and profitable banks do much better than those with weak banks. Not only have taxpayers not had to bail out our banks, but having solid, healthy banks means they have kept lending to businesses and households, so Australia has avoided many of the problems seen in other countries.”

“Australia has not faced the dire economic problems experienced overseas where economies are stagnating, austerity measures have been implemented and unsettling social unrest has emerged,” he added.

“This shows, that for our nation, there are important economic benefits of profitable and well-capitalised banks. Our banks underpin our economic growth by providing finance to businesses, keep our savings safe and continue to support the financial decisions of Australians.”

Solid, healthy banks can also contribute more to Australia, the ABA said. In the last three years, Australia’s banks have paid $21 billion in tax and provided $45 billion in payments to superannuation funds and other shareholders. In addition, banks have paid $2.8 billion for government backing of wholesale funding. Australia’s banks have also reduced fees to households by nearly $1 billion over the past two years.