During the past two or three decades structural change in the Australian financial system has been rapid. The system has grown substantially in assets and volumes of activity, has become much more open and competitive, and has undergone some significant shifts in market shares. There has also...

This paper presents a brief overview of developmentscurrently taking place in the Australian banking sectorrelating to the measurement and management of creditrisk. Section I provides, as background, a sketch of thestructure of banking in Australia. Section II considers someof the forces...

Most freshwater ecosystems in the United States are in a state of collapse. Existing management efforts take a piecemeal approach, addressing individual stressors, managing the systems for individual benefits, and protecting individual species. These disjointed efforts are doomed to fail. Both...

This paper was presented at the conference "Financial services at the crossroads: capital regulation in the twenty-first century" as part of session 2, "Credit risk modeling." The conference, held at the Federal Reserve Bank of New York on February 26-27, 1998, was designed to encourage a...

In April 1993, the Basle Committee on Banking Supervision released a series of consultative papers relating to the supervisory treatment of market risk within banks' trading portfolios. The papers proposed a method of allocating capital to cover risk from banks’ trading positions in debt...

This paper discusses the determination of a capital charge to cover default risk on a netted derivatives portfolio. Different methods of setting a capital charge are investigated. Their ability to track a more sophisticated measure of credit risk is tested for Australian banks’ portfolios. The...

The paper gives an overview of recent work in the development of the RBII macroeconomic model, focussing on adjustments designed to reflect the post-deregulation financial environment. Changes to the RBII model have been made in two main areas. First, a clearing market for short-term funds has...