Australia: Financial Safety Net and Crisis Management Framework—Technical Note
IMF Staff Country Reports, November 21, 2012
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- Australia: Financial Safety Net and Crisis Management Framework—Technical Note
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Bibliographic details
- Published: November 21, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475587319.002
Summary
- Australia has a history of few bank failures, even fewer financial crises, and its banking sector emerged from the global financial crisis relatively well.
- The Australian authorities have taken commendable steps to strengthen the financial safety net and crisis management framework over the last several years.
- The Government’s well-coordinated response to the global financial crisis included adopting significant legislative changes in October 2008 to put in place guarantee arrangements for retail deposits, among other enhancements to the financial safety net and crisis management framework.
- Further improvements were made in June 2010 and the Government is currently pursuing additional legislative changes.
Major findings and themes
- The banking sector’s resilience during the global financial crisis is noted as a distinguishing feature.
- Strengthening of the financial safety net and crisis management framework has been incremental, responsive to international developments, and includes legislative measures.
- Deposit guarantee arrangements for retail deposits were established as part of the October 2008 legislative changes.
Legislative actions and timeline
- October 2008: Significant legislative changes adopted to implement guarantee arrangements for retail deposits and other enhancements to the financial safety net and crisis management framework.
- June 2010: Further improvements implemented.
- Post-June 2010: The Government is pursuing additional legislative changes.
Subjects and keywords
- Subjects: Banking; Commercial banks; Crisis management; Crisis management framework; Crisis resolution; Deposit insurance; Financial crises; Financial institutions; Financial sector policy and analysis; Financial sector stability
- Keywords: acquiring ADI; ADI capitalization; ADI management; ADI resolution issue; application to the court; Commercial banks; CR; Crisis management; Crisis management framework; Crisis resolution; customer account liability; data processing system; directions power; financial crisis; Financial sector stability; financial support; Global; holding company; ISCR; problem ADI; resolution planning