## Australia: Financial Sector Assessment Program-Technical Note-Supervision, Oversight and Resolution Planning of Financial Market Infrastructures

_IMF Staff Country Reports, February 21, 2019_

## Source details

**Canonical URL:** [Australia: Financial Sector Assessment Program-Technical Note-Supervision, Oversight and Resolution Planning of Financial Market Infrastructures](https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-technical-note-supervision-oversight-and-46609)

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## Bibliographic details
- Published: February 21, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484398968.002

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### Executive summary
- This paper analyzes systemic risks related to Financial Market Infrastructures (FMI) in Australia, in particular central counterparties (CCP).
- Supervision and oversight of FMIs is well-established with supervisory expectations importantly strengthened over the past few years.
- Enforcement powers for the supervision of CCPs and Securities Settlement Systems should be strengthened in accordance with the Principles for Financial Market Infrastructures.

### Key findings
- Supervision and oversight framework for FMIs in Australia is well-established and has been significantly strengthened in recent years.
- Clarity is needed in the Reserve Bank of Australia’s approach to payment systems oversight, particularly regarding requirements for systemically and less systemically important payment systems.
- Australian authorities could benefit from the experiences and lessons learned by other jurisdictions through regular and more specialized coordination and communication efforts with other supervisors and resolution authorities.
- The authorities should review, and could benefit from, the experiences and lessons learned in the formulation and codification of Australia’s bank and insurer resolution regime.

### Policy recommendations and supervisory priorities
- The Reserve Bank of Australia should consider reviewing its approach to payment systems oversight to provide greater clarity on requirements for systemically and less systemically important payment systems.
- Enhance inter-jurisdictional coordination and communication with other supervisors and resolution authorities to leverage international experience and lessons learned.
- Review and potentially strengthen the formulation and codification of Australia’s bank and insurer resolution regime drawing on domestic and international lessons.
- Strengthen enforcement powers available for supervision of CCPs and Securities Settlement Systems to align with the Principles for Financial Market Infrastructures.

### Subjects and keywords
- Subject: Bank resolution framework, Financial crises, Financial market infrastructure, Financial markets, Financial regulation and supervision, Payment systems, PFM information systems, Principles for Financial Market Infrastructures, Public financial management (PFM)
- Keywords: ASX Clear, Bank resolution framework, CR, CS facility, Financial market infrastructure, Global, ISCR, payment system, Payment systems, PFM information systems, Principles for Financial Market Infrastructures, RBA assessment, RBA-ASIC MOU

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_Source: https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-financial-sector-assessment-program-technical-note-supervision-oversight-and-46609_