Graph 5  Click to view larger  Concluding comments I want to conclude with a few comments about the financial stability role of the Reserve Bank 2. The Bank has a longstanding mandate for financial stability, affirmed for example as part of the Wallis reforms in 1998. In the post-Wallis world, this has not been primarily a regulatory function.
The Bank does have regulatory powers in some areas relating to financial stability, notably in its oversight of payments systems and financial market infrastructures. But the financial stability function goes well beyond that to the Reserve Bank’s wider role in the financial system. It includes the Bank’s role as liquidity manager for the system and as the provider and operator of core payments infrastructure.