This paper traces the evolution of the Australian financial system from 1788 to the current day showing how institutions have evolved to meet the changing needs of the economy. Governors in the earliest periods struggled with an inappropriate legal and regulatory structure; and the economy...

The Australian financial sector has grown rapidly in recent decades and now looks big by global standards. The paper suggests that most of the growth has been driven by outward shifts in the demand for financial services driven by household preferences, by the availability of a wider range of...