03 September 2012 7:06am

Banks will have the nerve to ignore favourable terms in wholesale capital markets, even when pricing is very cheap Westpac's chief financial officer, Phil Coffey, said on Friday. Coffey was speculating about the distant day when credit markets are more orderly and demand for credit is more substantial.

"The consequence of maintaining an appropriate wholesale funding risk appetite is that there is ultimately a limit to which we will use wholesale funding to support growth," Coffey said.

"No matter how cheap wholesale funding may become, it may not be acceptable given its...