Australia s Financial Market System - 1751 Words

Australia has possessed an extremely successful financial market system courtesy to the Government implementation of influential regulatory bodies. These regulatory bodies such as the Reserve Bank of Australia (RBA), Australian Securities and Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), play a highly significant role in the operation of the Australian economy. Their responsibilities are to regulate Australia’s financial markets, to make the Australian economy fair to promote economic activity. The Australian economy has adopted an effective economic structure that is administered by these three major independent regulatory bodies in conjunction with Federal Government Treasury and other†¦show more content†¦It is clearly evident from the unemployment trends, which countries were significantly affected by the GFC. For example, Australia experienced a small spike in unemployment by 1.3% between 2008 and 2009 before maintaining a steady unemployment rate of around 5% for the next three years. Other developed countries such as USA who experienced a 4% increase in unemployment, the United Kingdom with a 2% rise. The European Area generally was greatly affected by the GFC, with an estimated increase of 2% from 7.6% to 9.6% unemployment rate of the entire European region, with that statistic continually rising with economic concern in the European markets. Australia’s economy was extremely resilient fundamentally a result of the well-structured, regulated financial system which intends to contribute to the overall performance of the economy. The Australian economy is structured according to the Wallis Inquiry of 1997, where a â€Å"twin peaks† model of financial regulation was proposed as stated by Jennifer G Hill from CLS Blue Sky. The report offered dramatic changes to the regulatory structure of the Australian economy, with several regulatory bodies forced to closure and responsibilities withi n the economy dispersed among several new regulatory bodies such as APRA and ASIC. Under this model, APRA is responsible for prudential