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Financial Stability
The Reserve Bank helps maintain a healthy
and stable financial system. This is fundamental
to the economic prosperity and welfare of
the Australian people.
In a healthy financial system, money is
channelled between savers and borrowers so
that different activities, like spending by
households or investment by businesses,
can be undertaken.
A healthy financial system is resilient so
that money keeps flowing even when
the economy slows or there are
disruptive events.
The Reserve Bank ensures that there are
adequate funds in Australia’s financial system.
During the global financial crisis, the Reserve
Bank provided temporary extra funding to
the system.
In normal times, the Reserve Bank watches for emerging risks in the
financial system. Twice a year it publishes a financial ‘health check’
in the Financial Stability Review. Where risks pose a threat to the
financial system, the Review explains the issue and the
policy response.
The Reserve Bank chairs the Council of Financial Regulators, which
includes the prudential regulator APRA, the corporate and financial
services regulator ASIC, and the Australian Treasury. The Council meets
at least four times a year to discuss current issues and policies. In a
financial crisis, it coordinates responses across the member agencies.
RESERVE BANK OF AUSTRALIA | Education Financial Stability