RBA

Risks to financial stability posed by the non-bank financial intermediation (NBFI) sector in Australia remain relatively contained. In comparison to overseas, the size of the NBFI sector (excluding superannuation) is relatively small, and its interconnectedness with the traditional banking sector has continued to decline. However, as has been shown in…

This article assesses physical climate risk in Australian residential mortgage-backed securities (RMBS) using two risk metrics. Based on these metrics, RMBS with higher levels of physical climate risk tend to be issued by small regional banks and credit unions. In addition, RMBS with higher physical climate risk do not appear…

The Australian private equity market has grown significantly for a number of years, particularly as the economy recovered from pandemic-related disruptions. Consistent with this growth, private equity deals involving Australian companies have increased in value, and private equity funds have raised larger amounts of capital from investors. Recently, however, private…

Public cloud technologies are increasingly being adopted by firms in the financial industry, including clearing and settlement facilities (CS facilities). Using public cloud offers a range of opportunities, but also presents risks for a CS facility’s operations. Because CS facilities play a critical role in supporting the smooth functioning of…

While it has evolved significantly over the years, China’s monetary policy framework continues to differ in some important respects to those in most advanced economies. In contrast to these economies, the People’s Bank of China makes significant use of quantity-based policy instruments, though interest rates now play a greater role…

Investment in Chinese urban residential real estate has been declining since 2021, and demand for steel by the sector has also slowed considerably. Despite this decline, overall demand for steel in China has been resilient due to strong growth in manufacturing and infrastructure investment, which looks likely to continue in…