Financial markets today play a significant role in the Australia economy. Financial market is a place where various financial instruments such as securities and bonds are traded. Like other traditional markets, financial markets provide a place for people who have excess funds and people who have the need for these funds to meet and trade. Exchange of funds is done through financial intermediaries. Financial intermediaries are firms that receive the accumulated funds of individuals or firms, which can then be lent out to other firms or individuals who can make use of them. Such financial intermediaries include both banks which form the majority and other non-bank financial intermediaries (NBFIs).
Since the 1980s, Australian financial markets have undergone two major changes in recent decades. The first change is done during the mid 1980s, which is the deregulation of the financial markets. …
