The Rudd Government will establish a Centre for International Finance and Regulation to support regional financial stability and build on Australia's growing status as a leading regional financial hub.
The Government will invest up to $25 million over the next four years to establish the Centre as a regional centre for excellence in financial system regulation and innovation.
The Centre's aim will be to contribute to regional financial system stability by developing and supporting students, academics and researchers from the Asia Pacific region and by building regional capacity.
The first phase of this investment will design a business model for the Centre, to be completed later this year.
The second phase will select a university or consortium of universities to be appointed to host the Centre.
The Centre will:
- Provide tertiary education and training for financial regulators from Australia and the Asia Pacific region;
- Undertake research into innovation in the financial sector;
- Undertake research into developments in the financial sector globally, including in relation to prudent decision making and governance in financial markets, and to ensuring markets develop in a way that reduces inherent system risk;
- Undertake research into best practice financial regulation; and
- Enhance regional financial system stability and regional links.
One of the key themes underlying the work of the Centre will be fostering financial sector innovation while at the same time ensuring the risk inherent in the financial system is appropriately managed.
The work of the Centre will seek to inform government, regulators and financial industry practitioners in Australia and the region. This includes developing greater understanding of how to reduce risk inherent in the system within the context of national economic imperatives for growth.
The Centre will seek to enhance understanding of global financial markets, their interconnectedness, and their influence on national economies.
The Centre will have a regional engagement, innovation and regulatory focus. One of the key underlying themes will be to ensure that government policy, regulatory actions and market practice support development of appropriately regulated markets.
The Centre will not supplant existing applied finance programs currently being offered in a range of Australian universities. Rather, the core of academic staff employed by the Centre will be complemented by exchange of teachers and students between the Centre and other universities.
The Centre will complement the Government's response to the report of the Australian Financial Centre Forum (the Johnson Report) and will boost Australia's regional engagement, contribute to financial sector innovation, and help Australia to contribute to the debate on global financial market regulation.
CANBERRA
11 May 2010