It just goes to show, how much more stable our financial system is, especially post- global financial crisis.
Fitch Ratings Service says the six largest US banks have $50billion in exposures across the Atlantic, and while it says those exposures are manageable, they're not without financial cost.
In fact, Citigroup, JP Morgan Chase and Bank of America alone, could have $44billion at risk, and eventhough Greece, Ireland and Portugal have sought bailouts, it's Italy and Spain investors are more concerned about, because US banks have concentrated their exposures to those countries.
But it's not just capital at risk that's impacting the banks, but sharemarkets also. Shaky investor confidence has pulled back the share prices of these banks also.
Here, though all four big banks have seen their share prices rise since the beginning of October, after they posted record profits.
Furthermore, a few weeks ago, assistant RBA governor, Malcolm Edey said that Aussie banks only have limited direct exposures to sovereign debt in the eurozone.
Australia's banking system has also bolstered capacity since the Lehman Brothers collapse in 2008, to be able to better cope with another international financial shock.
One way they're doing that is by increasing domestic deposits and using those as a funding source, which on reflection is a good strategy, because if the eurozone debt crisis continues to spread, it'll make credit harder to come by for the banks.
