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RESERVE BANK OF AUSTRALIA

About International Regulatory Fora

With the increased integration of financial systems around the world, attention has focused on threats to international financial stability. Global financial markets, fed by improved information and communications technology, are able to transmit shocks rapidly between economies. These concerns increased following the global financial instability of 1997 and 1998. The contagion at that time, where instability in one country quickly affected other countries, underscored both the global nature of financial markets and the speed with which market prices may respond to disturbances.

As a result, the international community has focused in recent years on improving the 'international financial architecture' in three main ways:

  • through encouraging earlier identification of, and concerted responses to, vulnerabilities in the financial system;
  • through the development of internationally agreed standards of best practice that could be applied consistently across financial institutions and countries; and
  • through improved information exchange and co-ordination among the main authorities responsible for promoting financial stability.

A number of international fora have been formed to promote the strengthening of the international financial system, and Australian financial authorities are active participants. These international fora include the:

The Reserve Bank of Australia is a member of the Basel Committee on Banking Supervision, the Financial Stability Board and the Group of Twenty.