Glenn Stevens Governor of Reserve Bank of Australia stressed that Australian banking regulations are making a big impression on other international markets. He feels that the Australian regulations are adequate to ensure that there is no risk to the Australian markets.

On the other hand, bankers across Australia feel that the rules adopted by the Australian Prudential Regulatory Authority (APRA) are very stringent and they have often complained about them.

Mr. Stevens was interacting with the industry at a business meeting in Perth. He also supported the approach adopted by the Australian Prudential Regulatory Authority (APRA).

He is also in favor of more stringent regulations and feels that regulators have to be ready for adopting tougher regulations in the future. He argued that even though these regulations may have a negative impact in the short term, they are very essential for the long term health of the economic system.

Stevens also cautioned the financial industry not to be overly ambitious and to offer easy and simplified products to the customers. He feels the industry needs to be better prepared for the risks.

At the same time, he supports the argument that ill managed financial institutions should be allowed to fail.

Experts also feel that markets need the support of the regulators and the Government to function smoothly.