Regulators of financial sector 'need power and resources'

An official from the Reserve Bank of Australia has said it is vital that regulators are given the power and resources needed to enable them to respond to threats to financial stability.

Speaking to the Paul Woolley centre for the Study of Capital Market Dysfunctionality, head of financial stability at the RBA Luci Ellis noted that recent events in the US and elsewhere demonstrate the problems that a financial crisis can cause, reports the Australian Associated Press.

She asserted that taking a "system-wide view" to managing financial instability is crucial.

Dr Ellis observed that following the housing boom in the early 2000s, regulators in Australia started to take this sort of action.

"Regulators must have the powers, the mandate, the resources, and, importantly, the culture to make them able and willing to respond appropriately to a threat to financial stability," she said.

Earlier this month, credit agency Veda called on the government to push its draft plan for a reform of credit reporting laws through quickly.

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