Such tests show the potential harm faced by individual banks in stressful conditions and thus the potential that such problems could affect the stability of the financial system. The goal is to see that large institutions have enough capital not just to survive in these conditions, but also to continue serving their customers.
The unemployment rate in Australia remains low, output is continuing to expand, inflation is contained, the banking system is strong and public finances are in much better shape than in other advanced economies. Yet the structural changes that are taking place are creating a sense of unease for many in the community, particularly amongst those who are not benefiting directly from the mining boom.