Globalisation is at work in banking industry, where globalisation refers to increase in competition by foreign competitors and home institutions doing business in the global market. To face up to the challenges of the internationalisation process banks of all sizes and from different countries should deal with longterm issues and industry analysis as well as firm-specific strategies. Banks are no longer in the business of buying (i.e. saving) and selling (i.e. lending) money but that of offering complete financial services to the banking public. Australias major banks include CMA, ANZ, NAB and Westpack. Answer ALL the following four questions.

Regulation on the Australian banking industry includes the Australian Prudential Regulation Authority (APRA); the Australian Securities and Investments Commission (ASIC); the Reserve Bank of Australia (RBA); and the Australian Treasury. Explain how these regulatory authorities affect the four major banks strategies to take risky business such as lending to highly leveraged firms and/or investing on risky financial assets domestically and internationally.