Stability versus competition
Resetting the balance between stability and competition requires a system-wide approach
Since the global financial crisis, financial stability has been at a premium compared with financial innovation and competitiveness. The difficulty in striking a balance between stability, innovation and competitiveness is that the costs of instability are all too apparent whereas the costs of too little competition and innovation take longer to emerge.
Featured in the Australian Financial Review on 8 August 2012, this editorial by Deloitte Access Economics partner, Professor Ian Harper, explores the potential for an inquiry into the Australian financial system to reset the balance between stability and competition and promote efficiency and productivity in our financial system without compromising its stability.