The global financial crisis exposed the fallacy of composition that strong individual financial institutions collectively ensure the safety and soundness of the system as a whole. Even the most vigilant, microprudential regulatory regime can be overwhelmed by systemic risks.
And as I mentioned, while some of the recent improvement in the services sector is likely to be part of a longer-running trend, part of it may also be cyclical. Signals from the various business surveys, the ABS labour force and vacancies data, can provide a timely guide as to the health of the increasingly important services sector.