The Reserve Bank governor Glenn Stevens says the outlook for the global financial system is improving, but there are still challenges ahead.
He said one of the most difficult issues will be the supervision of the “too big to fail” banks and corporations deemed too important to be allowed to go under when a crisis develops.
“But as the crisis recedes, and the global financial system is gradually nursed back to health, it is this issue that is going to leave the biggest lingering challenge,” he said during a speech to the Australian Business Economists annual dinner in Sydney.
He also noted that, the global financial system is less worrying than it was a year ago, and a result regulators can “devote more devote more focus to the job of designing and implementing changes to regulatory frameworks.”
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