costs. taking this further, it may be possible, in time, for government to dispense with agencies'transactions accounts and the associated daily sweep, allowing agencies to draw their daily spending requirements directly from the government's core accounts at the reserve bank. this could offer savings by avoiding fees currently applied on existing transaction accounts as well as increase administrative efficiency. finally, the ability to send more complete remittance information with a payment could reduce costs for australian businesses making payments to the government by including remittance information within the payment message rather than sending the information via a separate channel. it could also reduce the amount of back office work required by government agencies in trying to align payments with relevant information. open banking the government announced in may that it accepted the recommendations of a review into the design, operating model and regulatory framework for open banking in australia, and will implement them in stages over the next few years. [ 3 ] like npp, open banking represents a significant advance in banking arrangements, giving consumers of banking and financial services the right to access and https : / / www. rba. gov. au / speeches / 2018 / sp - ag - 2018 - 08 - 23. html 5 / 7 23 / 08 / 2018 the reserve bank's government banking business | speeches | rba share their banking data with third parties, including other payment service providers. the changes will increase competition for services. the reserve bank, as a banking service provider, will be participating in the open banking arrangements and is already considering ways by which our customers, along with third parties, can access their own banking data, consistent with the recommendations in the review. it is, of course, a decision for government agencies as to how they will utilise open banking. as with any new service offering, the reserve bank is consulting its customers with regard to the potential advantages for their business. at the very least, government agencies may use open access arrangements to centralise the collection of their banking data, particularly where they hold accounts at more than one financial institution. this would help to streamline the flow of their banking data to their financial management systems and provide better reporting for analytical purposes. whatever the case, the reserve bank, as a service provider, intends to play a role as a holder of data that government agencies can access from services currently provided by the reserve bank and as a receiver of data from commercial providers of banking services to government agencies. this would reduce reporting and analysis costs for the government as well

be trade spillovers from the weaker us economy to the developing world and to other developed countries in due course, even though there is not a lot of evidence of such an effect in the data we have as yet. the spillovers will not just be from the us either. the fact that the euro area appears to be slowing a bit, with the uk also expected to slow before long, means that the core industrial countries as a group may, over the period ahead, impart noticeably less impetus to global growth than they have in recent years. how big a difference that will ultimately make we cannot know for sure, given the apparent increased internal dynamism of much of the emerging world, and given that we do not know what policy responses those countries may make. but the bigger question is the extent to which a range of countries also experience the same shock as the us. it is in answering this question that we need to consider the financial events of the past year or so. the essential elements are well known by an audience in this city. over some years, the availability of credit increased in many countries. in the us in particular this phenomenon saw a large extension of credit into the sub prime space in the housing market. this was all aided by the securitisation process and the search for yield, which had its genesis in the high saving rates in other parts of the world. while most of these sub prime borrowers have in fact been servicing their loans quite adequately, flaws in the process saw standards slip towards the end of this cycle. as the problems came to light, pressure came to bear on various entities. institutions with exposure to sub prime mortgage assets, holders and intending issuers of structured products in general, sivs, conduits and other intermediaries that relied on wholesale funding were all tested. core banking institutions that sponsored off balance sheet entities very quickly found funding pressures transferred back to them. doubts over asset quality, uncertainty over funding and generally reduced appetite for risk suddenly erupted last august into a scramble for liquidity. these pressures have been seen in most of the developed economies, though they have been most acute in the us, the uk, the euro area and canada. for at least some of the g7 economies, then, these events would appear to have the characteristic of a common shock, in the form of a rise in the market cost of finance and, in some cases, perhaps, the possibility of a wider withdrawal of credit. even though it was american borrow