Too-big-to-fail largely phased out: Hockey
Federal Treasurer, Joe Hockey, has reconfirmed Australia's commitment to ending the ‘too-big-to-fail' mentality around financial institutions, but said large-scale failures were unlikely given the way the system has evolved.
Addressing the G20 summit in Brisbane, Hockey confirmed the Financial Stability Board had pitched additional capital sources for banks to draw on if they face potential failure.
However, he said the global financial system is markedly different to how it was in the lead up to the financial crisis of 2008.
"As a result of policy action our financial institutions are more resilient and less likely to wreak damage on our economies and citizens through costly failures," he said.
"They have more and better capital, and have more defences against liquidity pressures."
The treasurer said reducing the risks around derivative products and their transparency is also firmly on the agenda of the G20.
Recommended for you
MLC Expand has appointed retirement specialist Andrew Long to work with advisers and licensees and drive growth for its recently launched retirement solution.
Despite banks largely having exited the industry, advisers under institutional licensees are least likely to switch while 26 advisers have been appointed to a licensee more than 10 times.
Insignia Financial has shared a progress update on the acquisition by US private equity firm CC Capital as well as the departure of a long-standing director.
At the FAAA Congress in Perth this week, HUB24 has announced it is developing myhub, an integrated advice solution designed to address productivity challenges in the industry.
