I also note that over the next 6 months ANZ will introduce further RMB-denominated products such as trade finance instruments (including Letters of Credit) and RMB deposit accounts. We at the Reserve Bank are excited by this initiative for a number of reasons.
Typical building blocks of safety nets include emergency liquidity assistance, deposit protection schemes and exit policies. As highlighted by experience over the last twenty years or so, illdesigned safety nets can be a significant cause of financial instability if they fail adequately to counteract the loss of market discipline that they induce (the “moral hazard” problem).