Council of Financial Regulators reports on Brexit implications
The Treasurer has released the Council of Financial Regulators' report into the economic implications of the United Kingdom's vote to exit the European Union.
The findings of the report itself reflect the view of many Australian agencies in the wake of the 23 June referendum, including APRA, ASIC and the Reserve Bank of Australia: namely, that Australia is well placed to manage the economic and financial market repercussions of Brexit.
"The effect on the Australian economy, and on our financial sector, is expected to be small," Treasury said.
"This reflects the likely limited impact of Brexit on global activity, Australia's trade links being oriented more towards Asia than Europe and the limited direct exposure of Australian banks to the UK and Europe."
Global events such as Brexit "underscore the importance of pressing ahead with the Government's reforms to enhance the resilience of the Australian financial system", Treasury said.
"They also emphasise the need to support international efforts to strengthen financial stability and address risks. The Treasurer’s attendance at the G20 Finance Ministers and Central Bank Governors Meeting in Chengdu on 23-24 July 2016 provides an occasion to do so.
"It is also an opportunity to encourage a constructive approach by the UK and the EU to arranging the UK’s exit," Treasury said.