See also the research programme of Helene Rey that has documented how international financial flows and international financial intermediaries contribute to a global common component in the financial cycle. [9] On the global savings glut hypothesis, see Bernanke, B. (2005), “The global saving glut and the U.S. current account deficit”, speech delivered at the Sandridge Lecture, Virginia Association of Economists, Richmond.
The primary reasons for such a policy relate to the maintenance of minimum levels of competition, in the interests of prudential and systemic stability, in order to avoid the spread of risk and to promote reliance on a broader platform of institutions. Currently, Australia relies heavily on the “four-pillar” policy, which originated in 1990 from its previous “six-pillar” policy.