The Treasurer has outlined Australia’s response to the recommendations of the Financial
Stability Forum Report on enhancing the resilience of financial
markets and financial institutions.

He has released a table which highlights action that Australian financial
authorities, namely the Australian Prudential Regulation Authority, the
Australian Securities and Investment Commission, the Reserve Bank of
Australia and the Treasury, are undertaking to address each of five
areas identified by the Forum.

These areas are:

• Strengthened prudential oversight of capital, liquidity  and risk management.
• Enhancing transparency and valuation.
• Changes in the role and uses of credit ratings.
• Strengthening the authorities’ responsiveness to risks.
• Robust arrangements for dealing with stress in the financial system.