One consequence of lower inflation in Australia is the convergence of our bond yields to international norms, or at least the US norm (Graph 4). Some of you may have been able to remember that as recently as a decade ago, Australian government bonds were 400 basis points higher than US government bonds.
The Bank, and others who conduct stress tests, could introduce 23  The Basel Committee on Banking Supervision has developed quantitative metrics for identifying global systemically important banks (G-SIBs) and a set of principles (no quantitative metrics) for assessing domestic systemically important banks (D-SIBs): “Global Systemically Important Banks: Updated Assessment Methodology and the Higher Loss Absorbency Requirement” (July 2013) and “A Framework for Dealing with Domestic Systemically Important Banks” (October 2012).