Financial Markets, Institutions and Money 4th Edition by Mark Brimble
By: Mark Brimble; Paul Docherty; Paul Mazzola; Anup Basu
Publisher: John Wiley & Sons Australia
Print ISBN: 9780730363521, 073036352X
eText ISBN: 9780730357506, 0730357503
Edition: 4th
Copyright year: 2019
The financial system plays a critical role in both national and international economic prosperity. An
effective, efficient and stable financial system will promote economic growth, manage the risks associated
with financial transactions, produce accurate and reliable information to assist in decision making and
permit timely and reliable settlement of payments. However, a financial system that does not have these
attributes will undermine economic performance. Accordingly, governments have a vested interest in
ensuring the strength of their national financial systems, achieved through strict regulatory regimes. In
Australia, the management of the financial system has generated an environment in which there have been
few instances of financial institution failure. This has led to most users of the financial system placing
faith and trust in it, whereby, users assume their deposited funds will be safe and readily available and that
reasonably priced credit may be accessed. However, this is not guaranteed to be the case as illustrated
by the global credit crisis in 2008 during which banks dramatically cut lending levels, particularly to
business. Therefore, the regulators have to continually monitor and maintain the efficiency and stability
of the system. However, this task is challenging due to the continually changing financial landscape,
which are the result of forces such as deregulation, advances in technology and product development,
which increase the risks for all participants in it.
