Australia pledges more funds for Pacific banking amid China interest

BRISBANE, July 9 (Reuters) – Australia on Tuesday pledged to boost investment in Pacific Island countries to support their financial systems, as banks cut ties to the region citing risk at a time when China is looking to increase its influence there.

Some Western banks have ended long-term relationships with their counterparts in small nations in the Pacific, while others have looked to close operations, limiting access to U.S. dollar-denominated bank accounts.