Looking beyond the current reforms, which will take years to be fully implemented, I will now say something about the outcomes. What follows refers to the financial system as a whole, not to specific countries or institutions. First, besides reducing risks, the reforms will inevitably lead to unintended risk shifting.
The first is that Australians were more cautious and had fewer opportunities to spend, given that many services were simply unable to be offered. As these opportunities disappeared, households did adjust their spending patterns, spending more on electronics and exercise equipment and online.