Report

Table of Contents

1.0 Introduction 1

2.0 The Australia’s Prudential Regulatory System 1

2.1 Four Main regulators & Historical Development 1

2.11 Australian Prudential Regulation Authority 1

2.12 Reserve Bank of Australia 2

2.13 Australian Securities and Investments Commission 2

2.14 Australian Competition and Consumer Commission 3

3.0 The Importance of Australian Prudential Regulatory System 4

3.1 Banking in Australia 4

3.2 The Australian Prudential Regulatory System & Global Financial Crisis 4

4.0 The Analysis of New Reforms for Financial System 6

5.0 Conclusion 7

6.0 Reference 9

1.0 Introduction

The Australian prudential regulatory system, as the key financial system inquiry of the Australian government, plays a significant role in establishing prudential standards and practices to promote financial system stability in Australia. This report will provide a fundamental structure for the historical development of Australia’s prudential regulatory system, including the Australian Prudential Regulation Authority (APRA), the Reserve Bank of Australia (RBA), the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). In addition, it will show the source of their power and the importance of the systems. And then, it will identify the main threats to the Australia economy and prudential system. Meanwhile, it will explain the way how the prudential regulatory system deals with the financial issues and the reason why it is vital for protecting the Australian economy from international financial shocks. Finally, it will critically discuss the support from economic commentators for additional reform and the effect of them under the context of Australia capital market.

2.0 The Australia’s Prudential Regulatory System

3.1 Four Main regulators & Historical Development

There are four independent institutions that play a necessary role in regulating and...