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This is a group assignment, I just need to analysis only one kind of regulation of Australia financial system and any suggest improvement

Topic : Financial institution and marketing

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26th July 2010

Roles of financial regulation and prudential supervision of Australian financial system

After the recent financial downturn which affected the international financial institutions countries have enacted more practical and strict rules to govern their financial sector . In order to avoid the negativities of economic recession , it is fundamental that effective financial regulations are put in place . This is actually aimed at preventing or reducing the effects of future global financial meltdown

On the other hand , these rules should never comprise the functioning of these financial institutions since they form the backbone of governments ' business operations

The Australian government has formed several institutions to deal with the expected instability in the economy . For instance , the Australian Prudential Regulation Authority (APRA ) was formed in early 1998 with an aim of regulating the financial banks , credits institutions and insurance companies in order to ensure that they are offering the required quality of services to its customers (Porteous and Tapadar 2005 . Banks should honor their promises to clients , while on the other hand , insurance companies should compensate once a client 's insured property is affected

The Australian financial system is involved with the role of managing and analyzing financial risks which may affect the financial arena . This enables these financial institutions to draft counter measures to prevent these risks from happening . This is usually done by the implementation of an integrated risk control model which ensures that risks are...

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