A speech by ob体育 Chairman, Greg Medcraft, delivered at the American Chamber of Commerce in Australia Business Leaders鈥� Lunch, Hilton Sydney, 2 November 2012.
Ladies and gentlemen, today I will speak to you about the key challenges facing ob体育 over the next decade.
I can then respond to any questions you might have.
There are three key challenges facing ob体育 over the next decade to build resilience in the Australian financial system. These are:
- growing regulatory perimeter: The growing regulatory perimeter, particularly with the exponential growth in superannuation (1.4 trillion to 3 trillion to 5 trillion) 鈥� this means more products, more investors and greater investment funds and therefore increased risk in the financial system
- complexity: The increasing complexity of the financial system 鈥� products, information channels and financial markets are all increasing in complexity which also increases risk in the system
- and most importantly, proactive regulation: Leveraging ob体育鈥檚 resources to be a proactive regulator. Benjamin Franklin 鈥榓n ounce of prevention is worth a pound of cure鈥�. Stakeholder engagement, surveillance, education and guidance are all part of ob体育's proactive approach in order to maintain confidence in Australia鈥檚 financial system.