In such circumstances, the liquidity standard allows for a committed liquidity facility to be provided by the central bank against eligible collateral to enable banks to meet the LCR. 1  The net stock of Commonwealth government debt on issue is considerably lower at 6 per cent of GDP, reflecting the assets held by the Commonwealth government, including through the Future Fund.
Housing bubbles, for example, can be fuelled by rigid zoning and land use regulations which cap housing supply, coupled with permissive underwriting standards for mortgages which stoke housing demand. 5 In other words, ensuring financial stability requires the commitment of many policy actors – supervisors, regulators, governments – all of whom have to act in their own areas of responsibility.