The risky business of financial sector reform

Australian banks' disproportionate exposure to home loans is a source of weakness for the sector, but any changes to the system must account for the trade-offs between risk, competitiveness and efficiency.

One of the key insights provided by this week’s tabling of the Financial System Inquiry’s interim report is how inter-connected the system is and therefore how sensitive it is to any change.

Nowhere was that more evident than in the related discussions about competition within the system and the vexed issue of banks -- four of them in our system -- that are 'too big to fail'.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles