Banks and banking
The consequences of low interest rates for the Australian banking sector
There is a vast international literature exploring the consequences of low interest rates for various banking sectors. In this paper, the author explores how this international literature relates to the Australian banking sector, which operates differently to other jurisdictions.
Risky business: how Australia’s banks and super funds are responding to the nature crisis
In this report, the author investigates the level of preparedness amongst 20 of Australia’s largest superannuation funds and retail banks, in terms of measuring, managing and mitigating risks arising from impacts and dependencies on nature that are present in their portfolios and loan books.
The Term Funding Facility: has it encouraged business lending?
The Reserve Bank of Australia’s Term Funding Facility (TFF) was announced in March 2020 as part of a package of policy measures to support the Australian economy. This paper examines the effectiveness of the TFF in increasing the supply of credit to businesses, which was...
Digital assets in Australia: final report
This report recommends the development of a principles-based regulatory framework for digital assets, such as private stablecoins, central bank digital currencies (CBDC), tokens and cryptocurrencies.
Designed to disrupt: reimagining banking products to improve financial safety
This discussion paper is the first in a series of papers that will look at how the finance sector can minimise harm from the misuse of its products by perpetrators of domestic violence. The paper calls for financial products to better support financial safety.
Regional Banking Taskforce: final report
The Regional Banking Taskforce was established to bring banks and other key stakeholders to work together in partnership to share information, assess the impact of regional bank branch closures, and identify possible solutions. This report outlines the taskforce's recommendations.
Statutory review of the Consumer Data Right: report
This review finds that the Consumer Data Right's (CDR's) statutory framework has so far been broadly effective in supporting the CDR's rollout, is sufficiently flexible and robust to accommodate further changes to achieve policy objectives, and has scope to further explore its limits as the...
Macrofinancial stress testing on Australian banks
This paper outlines how the Reserve Bank of Australia’s bank stress testing model works. It also shows how the model was useful in a real-world crisis, at the onset of the COVID-19 pandemic.
The adequacy and efficacy of Australia’s anti-money laundering and counterterrorism financing (AML/CTF) regime
Evidence to this inquiry largely focused on the impact and/or the benefits of extending the existing AML/CTF regime to DNFBPs that are not already subject to regulation of this nature. As such, this report largely focuses on this issue, but also canvasses other aspects of...
Accounting for the digital economy: time for a fresh approach
This paper aims to explain why the information economy requires a new approach to accounting. It examines how the profession can reshape existing accounting standards to help fill the information gap, while developing an entirely new approach to gathering and reporting financial and non-financial information.
Review of the Australian Financial Complaints Authority: final report
This review provided an opportunity for feedback on the operation of the Australian Financial Complaints Authority (AFCA) since its establishment, and to consider whether further enhancements should be made to ensure the external dispute resolution scheme is appropriately calibrated and operating effectively.
Select Committee on Australia as a Technology and Financial Centre: final report
The committee's final report makes 12 recommendations in relation to the regulation of digital assets in Australia, 'de-banking' practices affecting Australian FinTechs and other businesses, and several other issues relating to Australia's position as a technology and financial centre, to drive opportunities for innovative businesses...
Designing and regulating retail digital currencies
Governments and multinational organisations around the world have begun exploring the feasibility of developing retail digital currencies for domestic and global payments. This policy brief does not address bitcoin or other privately issued digital currencies that are not backed by assets having intrinsic value.
Payments system review: from system to ecosystem
The payments system plays a key role in the Australian economy. It facilitates economic activity by providing a safe, efficient and effective way for Australians to exchange money for goods and services. This review was asked to investigate whether the regulatory architecture of the Australian...
Select Committee on Australia as a Technology and Financial Centre: second interim report
In the second phase of the inquiry, the committee has again categorised its work across the key areas of: tax settings; regulatory issues; access to capital; and skills and culture. This report also includes a standalone chapter on blockchain and digital assets, which is an...
The role of collateral in borrowing
This paper studies the role of collateral in credit markets under stress.
National Disability Insurance Scheme fraud prevention: financial crime guide
Developed in partnership with the National Disability Insurance Agency (NDIA), this financial crime guide includes indicators of potential fraud people should watch out for, including NDIS sourced funds being used in a way that does not correlate with providing or receiving support services.
Australian sustainable finance roadmap
The challenges and threats Australia’s financial system is facing include a warming climate, increasing extreme weather events, biodiversity loss, and a society under economic pressure with rising inequality, meaning there is an urgency with which action needs to be taken. The recommendations in this roadmap...
Consumer payment behaviour in Australia: evidence from the 2019 Consumer Payments Survey
The 2019 Consumer Payments Survey (CPS) showed that Australians are continuing to switch to electronic payment methods in preference to cash for their day-to-day transactions. More recently, the switch to electronic payment methods is likely to have accelerated as a result of consumer and merchant...
Select Committee on Financial Technology and Regulatory Technology: first interim report
Australia has a vibrant and growing FinTech sector, with a significant number of startups and early stage ventures. Australia's RegTech industry is comparatively less well developed. This inquiry is about ensuring the settings are optimal to encourage and support Australian FinTech and RegTech businesses.
How risky is Australian household debt?
It is often observed that the level of household debt (relative to income) is high in Australia compared with other countries and its own history. Concerns about how this will influence the economy’s ability to navigate a major downturn have for many years been central...
PostBank: filling a void, securing essential services
This discussion paper makes the case for the creation of a public bank in Australia by providing Australia Post with an Authorised Deposit-taking Institution (ADI) licence, and moving in time to establishing 'PostBank' as a full national savings and loan bank.
Design choices for central bank digital currency: policy and technical considerations
This paper investigates and explains the design choices, mainly technical, but also financial and legal, that central banks will unavoidably encounter in their exploration of central bank digital currencies (CBDCs). Contributing authors include experts in computer science, economics and law, whose research and practical experience...
This report finds that the Australian finance sector’s concentration on profits at all costs compromises the ethical integrity of workers in the industry. The report argues that while the Banking Royal Commission uncovered widespread misconduct in Australia’s banking and financial services sector, it failed to...
Impact of COVID-19 on the global financial system
This briefing is the outcome of several multi-stakeholder dialogues organised by the World Economic Forum’s 'Platform for Shaping the Future of Financial and Monetary Systems.' This briefing summarises the key findings of these discussions, providing insight into financial market trends, private-sector views of government responses...