The Need for Reform of the Australian Financial Regulatory System

It is being increasingly acknowledged thjat the benefits of deregulation of the financial system have failed to materialise, not so much because of flaws in the conduct of banks, but because of failure to adapt and change the overriding regulatory system to meet the challenges of deregulation, internationalisation and globalisation. In this article a four point system of reform is advocated, either on grounds of theoretical validity, or by reference to regulatory practices in other more advanced financial systems.