The Reserve Bank’s 2008 Financial Stability Review concludes that "Australia has benefited from having strong and profitable financial institutions with few problem assets on their balance sheets, and a sound regulatory regime. While the Australian financial system has not been completely insulated from developments abroad, it is weathering the current difficulties much better than many other financial systems."

Of particular interest is the Memorandum of Understanding (MOU) on Financial Distress Management dated 18 September 2008 between the members of the Council of Financial Regulators (Reserve Bank, Treasury, ASIC, APRA) at the back of the report (Also here).

The MOU sets out the objectives, principles and processes for dealing with stresses in the Australian financial system. It identifies the responsibilities of each Council member and is intended to facilitate a coordinated response to stresses in the financial system.