It is also important to establish the legal basis for macroprudential tools that can be used to address risks to financial stability that emerge from outside the banking sector, as well as to include a macroprudential perspective in the regulation of non-bank financial institutions across the EU.
•  Finally, the effects of the crisis on Australia, New Zealand, Papua New Guinea and India are small. Four of our commercial banks are branches of foreign banks in these countries. The fifth is a subsidiary of an Australian bank. I would therefore like to again reassure you that our financial system remain sound.