Michele Bullock: Property, debt and financial stability

Speech by Ms Michele Bullock, Assistant Governor (Financial System) of the Reserve Bank of Australia, at the Urban Development Institute of Australia (WA), Perth, 20 March 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
20 March 2019

Thank you for the invitation to speak to you today. It is great to be here and to hear your perspectives.

As Assistant Governor (Financial System) I oversee the Bank's work on financial stability. But what is financial stability and what is the Reserve Bank's role in it?

The wellbeing of households and businesses in Australia depends on growth in the Australian economy. And a crucial facilitator of sustained growth is credit - flows of funds from people who are saving to people who are investing. Credit provides households and businesses with the ability to borrow on the back of future expected income to finance large outlays, for example, the purchase of a home or equipment to establish or grow a business. A strong and stable financial system is important for this flow of funds.