Assignment:
You may choose any one of the following topics for your report (OR if you prefer, you can choose a report topic from one of the other lists of report topics posted on iLearn). Your report should be no more than 1000 words.
Please read the "Instructions for ACST834 Reports" before you start writing your report. The Instructions set out the due dates, the method of submission, and the criteria which we will apply in marking your reports.
Competition in the Australian Banking System
Regulation has both costs and benefits. Under normative theories of regulation, regulation should be "in the public interest", and ideally should be designed to maximise the benefits and minimise the costs to the public. But how can this be achieved? How can we weigh up the costs and benefits of each new regulatory proposal?
In Australia, there is currently a debate about banking regulation.
Australian prudential regulators naturally want to ensure that we have a stable financial system, so that there is a low probability that any bank will become insolvent. As a result, in recent years Australian regulators have increased regulation of banks, aiming to make Australian banks "unquestionably strong".
But some people believe that the prudential regulators have gone too far - their rules are reducing competition and thereby having some negative effects on Australian customers.
Your report should:
- Explain why APRA thinks it is important for banks to be "unquestionably strong".
- Describe some of the ways that prudential regulators (APRA) has tried to make banks safer.
- Describe some of the negative side-effects of such regulatory action.
References:
Competition in the Australian Financial System, Productivity Commission Draft Report, January 2018 available on www.pc.gov.au
Readings:
1. Good is the Enemy of great- That's what makes death so hard- unsatisfied curiosity
By Beryl Markhan
2. The Theory of Multiple Intelligences
By Howard Gardner
3. Leadership
By Rudolph W. Giuliani