You are require d to consider the history of bank regulation in Australia, the current regulators and their roles, recent governance and other concerns, and if deemed desirable formulate recommendations for further regulatory action. SOME BACKGROUND THOUGHTS: The first Australian bank commenced in the nineteenth century, others were formed later, and such regulation as existed was vested in the states or colonies where they carried out business. Towards the end of the nineteenth century, some colonies, especially Victoria ,experienced a massive land boom and bust, followed by a deep depression, during which a number of colonial banks failed. Following Federation in 1901, the regulation of banks became a Commonwealth responsibility, legislation was subsequently enacted, a central bank was created and since then no Australian banks have failed. After World War II, the view emerged that if the Government controlled the banks it could control the economy. Hence, strict rules applied to bank lending, interest rates, banks’ holdings of government securities, etc. The RBA was created as the central bank, charged with oversight of the banks. Over time, and following world trends and the Campbell Committee report in the 1970s, the mood changed and deregulation became the norm. In the 1980s and 1990s, some weaknesses in the regulatory structure emerged and “re-regulation” was introduced, with the establishment of ASIC and APRA, taking over and expanding certain functions of the RBA. Other bodies operate. Over the last 15 years, further concerns have emerged, with banks being the focus of charges of weaknesses in governance, with issues such as inappropriate financial advice by banks’ financial planners, disputes over the settlement of insurance claims and more recently, charges that one major bank had not reported or taken action over massive illegal money laundering. Presentation and Lodgment Further details on the presentation and lodgment requirements for the Assignment and penalties for late lodgment, along with the rubric for assessment purposes, are set out in the Subject Outline (SO), pages 7- 8. Within the context of section (e) of Presentation on page 8 (SO), it is recommended that the body of your essay contain 5 numbered sections, in line with the Marking rubric, viz., Introduction; Research (a literature survey); Analysis; Recommendations; and Conclusion. You should follow the following typing conventions: 1. Research – A search of the literature to identify and describe the rationale for and history of bank regulation in Australia. Marking Guide Note – re- Research: A quality mark out of 30 (out of the overall 100) will be awarded. As noted above, at least 6 other references apart from Kidwell et al’s text should be identified, including one other text and one journal article. If fewer than this number of references are cited, a penalty of one mark out of the 30 for each shortfall will be deducted from the Research mark. The Research should identify a brief history of banking and its regulation in Australia, developing the points set out on page 1 of this document and citing relevant literature sources. Past and present regulatory structures and rules should be identified, with appropriate references cited. Short-comings in the regulatory framework as identified by observers and suggested remedies including proposed new structures and government action should be noted, along with references cited. Any overseas develop-ments which are relevant to the Australian system could be of interest. Failure to cite references in the Research segment will result in a loss of up to 3 marks out of 30 for this segment, while failure to follow the Harvard style of referencing in the List of References will result in a further loss of up to 2 marks (out of 30). This segment is worth 30% of the assessment and should account for 30% - 40% of the word length, viz., broadly between 750 and 1,000 words. 2. Analysis – From the research material in 1. above, the regulation of banking in Australia over the years should be analysed; its successes noted and its weaknesses portrayed. Where opinions or recommendations for the future have been reported in the Research survey, a critique of these views should be undertaken – both as part of the Analysis and as a forerunner to the student’s own recommendations for the future, in Section 3 below. Any other relevant issues should be analysed. Marking Guide Note re- Analysis. A mark out of 30 (out of the overall 100) will be awarded, based on the merit, coverage and critique of the analysis.