Quite rightly, many people question how global banks, with their sophisticated risk models and their highly paid staff, could have managed risks so poorly. Fortunately, in contrast to these global developments, the Australian banks have fared considerably better. But because finance is a global industry, some of the consequences of the events abroad are being felt here as well.
The agency can then determine the possible effects of the expansionary BIS Review 37/1998  ˝  -9-  proposal on the organization’s deficient Y2K readiness efforts, and possibly discourage or deny expansion if financial and managerial factors are inconsistent with approval of the application. 5.