Australian banks were holding a record A$7.4 billion ($6.2 billion) on deposit at the central bank yesterday

Australian banks were holding a record A$7.4 billion ($6.2 billion) on deposit at the central bank yesterday as financial institutions hoard cash worldwide amid concerns the U.S. bailout plan will be delayed. Banks added A$462 million to their exchange settlement accounts, the Reserve Bank of Australia said on its Web site. The RBA added A$876 million to the financial system today after estimating money markets would have a deficit of A$658 million. Australian banks' borrowing costs were close to the highest since Bear Stearns Cos. collapsed six months ago, according to a gauge that measures the availability of funds in the market. The difference between the rate banks charge each other for three-month loans and the overnight indexed swap rate stood at 89.75 basis points at 10:09 a.m. in Sydney, widening from 88.5 yesterday, when it earlier touched 98.5 points, Bloomberg data show. The gap has averaged 45 basis points this year. A basis point is 0.01 percentage point.