Australia's financial system was once divided into banks and non-banks, however this convention has disappeared over time and now many financial intermediaries offer almost all services banks do. However, as banks still control the majority of the financial system, they remain the most important asset to the financial system.
One of the two major changes Australia's financial system has undergone through recent decades is the involvement of financial regulation. This important development in the late 1990s aimed to improve the efficiency of the system by reacting to changes to financial markets that have occurred since deregulation.
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