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An Executive Summary

The continuing technological innovations as well as the competition among the banks have allowed for the growth of the e-commerce which in turn has given a wide array of financial products to be accessible to both retail and wholesale customers. However, the rapidly developing e-banking capabilities present various risks and benefits. The regulatory authorities manage the antecedent risks through the risk management principles.

The yield curve shows the expected changes in the interest rates. The curve also reflects the changes in the economy. The Australian economy has had several upheavals since 2011 especially because of the low trading in minerals and allied products. The interest rates are expected to go up and therefore the yield curve should reflect higher prices in the relevant yield curve segments.

The global financial crisis necessitated the restructuring of the world financial sector approach to risk and regulations, hence, the Basel 111 Capital reforms. Basel 111 Capital was adopted in Australia in 2013 and it set higher levels of capital requirement within the liquidity framework. The countercyclical buffer is set to be implemented in phases with the expectation that it will be fully effective by 2019.


Bly, M. 2016. Are all risk perceptions created equal? Comparing general risk assessments and specific risk assessments associated with the global financial crisis. Human and Ecological Risk Assessment: An International Journal, 22(1), pp.50-70