The paper "Australian Financial Services Industry" is a wonderful example of a report on finance and accounting. Australia’ s financial institutions are categorized into the bank and non-bank financial institutions. These are regarded as the main providers of financial services. The banks play a critical role in the financial services sector of Australia. So as to attain the title of a bank, a financial institution must obtain a license from the relevant Australian body. On the other hand, banks are classified as ‘ Authorized Deposit-taking Institutions (ADIs). Banks provide services such as depositing, creation of credit between lenders and borrowers, and the making of payments.
In addition to these, they provide their customers with professional services such as: dealing with securities, foreign currency exchange, making lease arrangements, provision of risk management services, wealth management, financial planning and provision of advice related to business, finance and corporate among others (Adadevoh, 2010). The four largest banks within the Australian banking system are ANZ Banking Group, Commonwealth Bank of Australia, National Australian Bank, and Westpac Banking Corporation (Adadevoh, 2010). These banks hold around $1.4 Trillion of total assets equivalent to over 140 percent of GDP.
All Australian-owned banks are listed on the Australian Stock Exchange which can be direct or indirect through their parent. On the other hand, there are 39 foreign-owned banks operating in Australia which collectively account for 20 percent of domestic banking system assets. In addition to banks, other types of ADIs are the credit unions and building societies which collectively account for 2 percent of domestic financial system assets. However, the rapid growth in the number of banks and the expansion of banking activities is associated with the numerous conversions of building societies into banks. Non-banking financial institutions are such as the Registered Financial Corporations (RFCs) and those categorized as Managed Funds (MFs).
RFCs include money market corporations and finance corporations, while MFs include: unit trusts and super funds.
‘Financial sector supervision’, making transparency transparent: an Australia assessment, pp. 2-
5. Retrieved on 14/07/ 2011 from http://www.treasury.gov.au/documents/178/PDF/ch7.pdf
Mike Head, 2008, ‘Australian bank debt write-downs reveal deepening economic problems’,
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Kodjo Adadevoh, 2010, ‘Current issues faced by various Australian and New Zealand industries’
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2010, ‘the European Sovereign Debt Crisis Is No Basis For Restricting SME's Access To
Finance’, Australian chamber of commerce and industry, Retrieved on 14/07/ 2011 from http://www.acci.asn.au/Research-and-Publications/Media-Centre/Media-Releases-and-Transcripts/Economics-Industry/The-European-Sovereign-Debt-Crisis-Is-Not-Basis-Fo?feed=ACCIResearch
The Structure of the Australian Financial System1, 2006, reserve bank of Australia, Retrieved
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Australian Bankers Association, 2004, ‘Financial Services Sector’, Retrieved on 14/07/ 2011
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Approach, 7th Edition, McGraw-Hill Irwin, Sydney.
‘Welcome to the website of Australia’s central bank’, reserve bank of Australia, Retrieved on
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