The Federal Treasury has added some impetus to the push by the Investment and Financial Services Association for the expanded export of financial services from Australia.
In a background briefing note prepared for the meeting of APEC Finance Ministers in Queensland later this week, the Treasury has pointed to the need for a further development and deepening of capital markets, including corporate bond markets, as well as a diversification of the range of financial institutions and products.
It said such factors could increase the availability of funds and reduce the cost of investment.
The Treasury background paper said the cost of investment in the region could be inflated by high finance costs, inefficient taxes, overly burdensome government regulations and inadequate infrastructure.
It said a lack of competition in the financial sector could also restrict access to funds and raise borrowing rates.
“Further developing and deepening capital markets, including corporate bond markets, and diversifying the range of financial institutions and products could increase the availability of funds and reduce the cost of investment,” the briefing paper said.
