The Reserve Bank is uniquely placed to do this. As a full service central bank we can leverage our different tools and market functions. That means that, not only can we adapt our regulatory or supervisory response as circumstances dictate, we can also use our markets functions to provide liquidity to the financial system at times of stress.
We work with other agencies to promote a dynamic and healthy financial system. We are working hard to set robust requirements that address structural, cyclical and emerging risks in the financial system. Our requirements are not set and forget – we adapt them as vulnerabilities evolve and as risks emerge (and recede).