23 Jul 2014

RB plans regulatory framework review

1:21 pm on 23 July 2014

The Reserve Bank is planning a year-long review of prudential regulation to ensure it is efficient, and provides clarity and consistency, deputy governor Grant Spencer says.

Deputy Reserve Bank Governor Grant Spencer.

Deputy Reserve Bank Governor Grant Spencer. Photo: RESERVE BANK

The Reserve Bank was committed to delivering a world-class regulatory framework which was lean, easy-to-use and as cost-effective as possible, Mr Spencer said.

It had toughened up the rules governing the sector in the wake of the global financial crisis (GFC) and collapse of finance firms and now wanted to make sure they were working as well as they could.

"We think it's time to take stock and just try and look at the overall regulatory framework for the financial institutions, and it's time to look at simplifying the whole structure," he said.

"Since the GFC there's been a lot of regulation, there's been a trend to try and make banks safer, and we agree with that principal.

"Now, five years on, we think it's an opportune time to say 'okay, let's look back at that regulation we've put in place, can we make it simpler, clearer, more efficient."

Mr Spencer said the review had not been prompted by some in the banking industry grumbling that it was overburdened by regulation.