(RTTNews) - Wednesday, Reserve Bank of Australia’s Assistant Governor, Malcolm Edey said more demanding regulation of banks’ capital, liquidity and risk-taking will make the core of the system safer. But, he added “… it will also add to banks’ cost of doing business, and to the incentive to shift business into
the less regulated parts of the system.” So it will be important to get this balance right.

“We are moving into a world where banks are going to be required to hold more capital and to take less risk,” he said in Sydney.

Edey added that regulators will ask for higher liquidity resources and they will pay more attention to the way risks interact across the financial system, in addition to the conventional focus on the safety of individual institution.

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Posted in Categories: Australia, Economy, Releases.

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