across the full spectrum of market participants. i ask you all as participants in the foreign exchange market to familiarise yourself with the principles of the code and verify that your operations in the market align with them. that said, the process does not really end, because as the foreign exchange market continues to evolve, the code will need to evolve with it. the work to date has reflected a very constructive and cooperative effort between the central banks and market participants. i would particularly like to acknowledge the enormous time and energy contributed by david puth and the market participants group as well as the team of my fellow central bankers. all of us recognise the need to restore the public ’ s faith in the foreign 4 / 5 bis central bankers'speeches exchange market and the value of the global code in assisting that process and also in helping improve market functioning and confidence in the market. let me finish with three things to take away with you : read the fx global code when it is released on may 25th. adapt your business where appropriate to conform with the principles of the global code. ask your fx counterparties whether they are committed to the principles of the global code. 1 see < www. bis. org / mktc / fxwg / gc _ may16. pdf >. 2 see < www. bis. org / press / p150511. htm >. 3 see < www. rba. gov. au / afxc / about - us / pdf / global - preamble. pdf >. 4 see < www. bis. org / mktc / fxwg / am _ may16. pdf >. see also c salmon ( 2016 ), ‘ rebuilding trust through the “ fx global code ” : reasons for optimism ’, available at < www. bankofengland. co. uk / publications / documents / speeches / 2016 / speech924. pdf >, speech at the aci uk square mile debate, london, 21 september ; and s potter ( 2016 ), ‘ the role of best practices in supporting market integrity and effectiveness ’, remarks at the 2016 primary dealers meeting, federal reserve bank of new york, new york city, september, available at < www. newyorkfed. org / newsevents / speeches / 2016 / pot160907 >. 5 see < afxc. rba. gov. au / news / afxc - 26052016. html >. 6 see < www. bis.

3 / 20 / 2019 property, debt and financial stability | speeches | rba speech property, debt and financial stability michele bullock [ * ] assistant governor ( financial system ) urban development institute of australia ( wa ) perth – 20 march 2019 thank you for the invitation to speak to you today. it is great to be here and to hear your perspectives. as assistant governor ( financial system ) i oversee the bank's work on financial stability. but what is financial stability and what is the reserve bank's role in it? the wellbeing of households and businesses in australia depends on growth in the australian economy. and a crucial facilitator of sustained growth is credit – flows of funds from people who are saving to people who are investing. credit provides households and businesses with the ability to borrow on the back of future expected income to finance large outlays, for example, the purchase of a home or equipment to establish or grow a business. a strong and stable financial system is important for this flow of funds. there is no universal definition of financial stability but one way to think about it is to consider what is meant by financial. my colleague luci ellis suggested that this is best thought of as a disruption in the financial sector so severe that it materially harms the real economy. [ 1 ] this leaves unsaid where the disruption might come from, but we would all recognise the outcomes of financial stability when we see it. for example, while australia was spared the worst impact of the global financial crisis, internationally it demonstrated the impact that financial instability can have on growth and hence the wellbeing of households and businesses in the economy. instability most of you will know about the reserve bank's role in conducting monetary policy. but another key role of the reserve bank that you might be less familiar with is promoting financial stability. in this area, we share responsibility with the australian prudential regulation authority ( apra ). but it is apra that has responsibility for the stability of individual financial institutions and the tools that go along with that. so how does the bank contribute to financial stability? https : / / www. rba. gov. au / speeches / 2019 / sp - ag - 2019 - 03 - 20. html 1 / 14 3 / 20 / 2019 property, debt and financial stability | speeches | rba there are a number of things we do. we undertake analysis of the economy and the financial system through the lens of financial stability, looking for financial