The problem is with the overseas banks, not Australian Banks....

The problem is with the overseas banks, not Australian Banks.

Australia already has the regulation balance right and doesn't need more.

What governments around the world need to do is get rid of the monetary policy system of trying to control interest rates via central banks.

This has resulted in interest rates being artificially low for decades, fueling a long term credit bubble (a market distortion).

"Float" world interest rates at let the market determine the price.

For those that say that the GFC is evidence free markets fail, I say, we don't have true free markets and government lever pulling is what got us into this mess.