Australia will use its presidency of the G20 this year as an opportunity to promote the role of central banks as a vital component in the quest for greater financial stability and more effective systemic risk management. Speaking at an industry conference in Sydney, a senior Reserve Bank of Australia (RBA) official said that central banks needed to work more closely with their counterparts in prudential and conduct regulation. He said the strong coordination between Australia's financial and regulatory agencies, including the RBA, was one of the reasons that the country had emerged relatively unscathed from the financial crisis. Malcolm Edey, assistant governor at the RBA, said the 2008 crisis had highlighted the need for extensive cooperation between regulatory agencies and central banks. Edey said some governments had responded to the financial crisis by transferring significant regulatory powers to their central banks. The most high-profile example, he said, had been the transfer
↧