As European banks struggle to commit as to how much their book values should be stated against the backdrop of deep sovereign bonds restructuring, Australian banks have remained strong and viable, according to a top officer of the Reserve Bank.

Australia's Reserve Bank assistant governor Guy Debelle cited in an interview over ABC Online on Thursday that consumers should find solace that changes lodged on the Australian banking system had made it withstand the external stress related to the EU and the U.S.

"We are not seeing any of the same sort of stresses for the Australian banks that are present for some of the European banks. The Australian banks' funding structures are considerably more resilient to periods of stress markets than they were previously given the changes that have occurred over the past few years. So I think we should at least take some comfort for that," Mr Debelle told ABC News Online.

The local bankers' organization, the Australian Bankers' Association (ABA) said it's important that Australian banks are profitable, because they provide economic security at a time when global conditions are unstable.

Local Banks Financial Standing

Steven Münchenberg, Chief Executive of the ABA, said: "A solid and reliable banking system underpins our economy at a time when countries overseas are still dealing with high unemployment, poor business conditions, negative economic outlooks and depressed consumer sentiment. This is the result of the continuing impacts of the global financial crisis (GFC)."

"Unlike overseas, banks here did not fail, nor did they require Government bail outs. Australia's healthy banks continue to keep our savings safe and to make loans which keep the Australian economy moving."

Now the annual reporting period is underway, there's heightened interest in banks' results, so the ABA has produced a fact sheet which answers many of the commonly asked questions.

By setting out some facts on what bank profit is and why it's important, the ABA hopes to improve the quality of the debate during the results reporting season.

The fact sheet covers:

1. Where does bank revenue come from?

2. Why do banks make large revenues?

3. Where does bank revenue go and what costs do banks face?

4. Who benefits from bank profits?

5. How do banks' profits compare to other large Australian businesses?

Banks Deliver Taxes, Corporate Dividends

Mr Münchenberg said: "The 'headline' profit numbers of banks appear large because they are very large Australian businesses, yet only two banks feature in the 50 most profitable listed companies in Australia."

"When viewed against the size of the asset base, bank revenue is relatively low. Bank revenue is only about 5% of total bank assets. Profits represent just 1.3% of bank assets."

Mr Münchenberg said: "In these uncertain times, it is important for banks to be profitable, so that they have some buffers in place which provide resilience against shocks and a cushion against any downturn in economic circumstances."

"Critics, who claim banks are too profitable or who call for a reduction in profits, don't think through the implications of a weakened banking system, nor are they willing to outline what a safe level of profit should be."

Australia is in a fortunate economic position and this has enabled banks to deliver dividends.

"What's interesting to understand is 'where do all the dividends go' because the perception is that banks distribute all their profit to shareholders. In fact, shareholders only receive about half of all bank profit," Mr Münchenberg said.