Three of Australia's largest banks have obtained long-term loans from the Future Fund as cash dried up from other sources, The Australian reports.
The ANZ, Westpac and National Australia Bank (NAB) tapped funding for up to 10 years, with the deals concluding shortly after the collapse of investment giant Bear Stearns in the US on March 16.
Documents obtained under Freedom of Information laws showed that NAB concluded its deal on March 19, ANZ on April 3 and Westpac on April 4.
But a spokesman for the Future Fund - which was set up to guarantee the superannuation of public employees - said there was nothing unusual about the investments.
"We have made investments in long-term funding: with NAB, Westpac and the ANZ," he told the newspaper. "The deals are normal, commercially competitive, private market placements."
The global financial downturn has meant all financial institutions have found it more expensive to obtain long-term funding in recent months.
Major banks have reacted by tapping a wide variety of markets as insurance against the downturn and have raised record amounts of long-term funding in Australia and overseas.
The news comes as the Reserve Bank of Australia board is expected to cut the official cash rate by half a percentage point at its monthly meeting in Sydney Tuesday.
Most analysts have suggested the commercial banks are unlikely to pass a cut in official rates on in full due to increased costs in credit markets.
Treasurer Wayne Swan has urged banks to pass on any relief to home owners promptly.
