RBA pumps in $1.3bn 'to maintain liquidity levels'

The Reserve Bank of Australia (RBA) has injected a net $1.3 billion into the country's financial markets, it has emerged.

According to the Australian, the move is a blatant attempt to assuage nervous investors and maintain a steady flow of liquidity in the market.

Sally Auld, JP Morgan interest rate strategist, told the publication that it is nothing out of the ordinary: "You'll probably see other central banks doing the same thing."

During the last few days there has been a whirlwind of activity in the world's banking sector with Wall Street investment bank Lehman Brothers filing for bankruptcy and news that Bank of America has tabled a $US50 billion ($61 billion) bid for broking behemoth Merrill Lynch.

Around 130 jobs may be affected at the Australian arm of the global baking giant Lehman Brothers, the Sydney Morning Herald reported.

Last week, the Age speculated that National Australia Bank (NAB) may have to write down at least $500 million following a continued deterioration in the global credit markets.

NAB quickly moved to douse speculation that it had only two people managing its $1.2 billion portfolio of 10 collateralised debt obligations of asset-backed securities.

"We have a specialist asset management team of an appropriate size - substantially more than two people," a NAB spokesman told AAP.

According to media reports, Citigroup expects both NAB and rival ANZ Banking will be forced to write down between $500 million to $1 billion from their credit portfolios.

Australia's best savings accounts compared and reviewed

Latest Money News from Money-Au.com.au