Banks stronger now than in GFC: RBA

Australia's financial system is in a better position to cope with the COVID pandemic, the RBA says. (/AAP PHOTOS) (AAP)

The financial sector is stronger than during the global financial crisis, making it less likely markets will again suffer the severe shock that sent the world into an economic meltdown.

Senior Reserve Bank of Australia official Jonathan Kearns says reforms introduced after the 2007 crisis left the financial sector more resilient, which meant it didn't suffer a repeat collapse when the COVID-19 pandemic hit.