To conclude, over the next 18 months, there will be some significant developments in the Reserve Bank’s balance sheet, resulting from some upcoming changes in the payments system and the commencement of the Committed Liquidity Facility. Both of these changes are being accommodated within the general framework for the implementation of monetary policy that has operated successfully in Australia for some considerable time.
The framework calls for moving from a four-weight scheme — with most of the assets at one weight regardless of risk — to multiple and more sensitive risk weights and also includes steps to curtail loopholes dealing with securitization transactions.