BIS central bankers’ speeches  9  Graph 9  A reasonable conclusion is that the degree of vulnerability to a global panic of any given magnitude appears to have diminished, rather than grown, over the past few years. It hasn’t completely disappeared, and it would not be sensible to expect it would, unless we were pursuing a policy of financial autarky.
But there is little reason to assume that Australian institutions are somehow unusually exposed to these risks compared with most of their counterparts overseas. In the end, of course, any bank’s ability to maintain the confidence of its creditors is mainly about its asset quality. That brings us back to lending standards, the macroeconomic environment, and so on.