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Financial Regulation in Australia
Author(s) -
Davis Kevin
Publication year - 1984
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1984.tb00466.x
Subject(s) - financial regulation , imperfect , control (management) , prudential regulation , mechanism (biology) , business , payment , bank regulation , economics , financial market , finance , accounting , financial crisis , macroeconomics , management , linguistics , philosophy , epistemology
This paper examines whether a regulatory distinction between banks and other financial institutions, as proposed by the Campbell and Martin Reports, is an appropriate ingredient of financial regulation. Three specific issues relevant to the making of such a distinction are examined. They are entry to the payments mechanism, monetary control, and prudential regulation. In examining each of these three issues the roles of imperfect information and other financial market characteristics are stressed. The paper concludes that while a regulatory distinction between banks and others may be appropriate, the distinctions suggested by the Reports and associated regulatory frameworks are unwarranted.