Question

Give the recommendation to the Australian government a financial policy that could ensure the stability of commercial banks’ (especially smaller banks), access to international funds ?

Answer 1

I will recommend the Australian government following changes in the financial policy for ensuring the stability of the commercial banks-

A. Flexibility in the rules and regulation so that this company can access the international markets.

B. Requirements of funds to access international Markets and capital to excess International markets should be substantially lower

C. There should be many incentive which must be provided to the smaller banks in order to have access to the financial Markets and which will boost the foreign reserves of the country.

D. The Reserve requirement of these banks must be lowered so that they will have access fund to lend to International markets

E. They should be allowed to open multiple branches other countries without much restrictions

F. There should be flexible Central Government as well as Central Bank in order to boost the overall accessibility of small Bank to financial market.