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Australia Yearbook - 2001

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906 Year Book <strong>Australia</strong> <strong>2001</strong><br />

1901 in retrospect<br />

The current financial system can clearly trace its<br />

foundations and connections to the structures<br />

and activities of the financial system existing in<br />

1901. The three components of the financial<br />

system: financial enterprises, financial markets<br />

and payments system, operate along much the<br />

same lines as they did in 1901. However, the<br />

financial system has undergone considerable<br />

growth, with increased diversification and<br />

specialisation within institutions, markets,<br />

products and services, and with higher levels of<br />

activity, to facilitate and/or profit from structural<br />

and economic changes. Diagram 26.38 shows<br />

the relative structures of the financial sector in<br />

1901 and 2000.<br />

26.38 AUSTRALIAN FINANCIAL SECTOR, Comparison of Structures—1901 and 2000<br />

Friendly<br />

societies<br />

Life<br />

insurance<br />

Money<br />

market<br />

corporations<br />

General<br />

financiers<br />

Pastoral<br />

finance<br />

companies<br />

Common<br />

funds<br />

Trustee<br />

companies<br />

Public unit<br />

trusts<br />

Fund<br />

managers<br />

Other<br />

financial<br />

corporations<br />

Pension<br />

funds<br />

Finance<br />

companies<br />

Securitisers<br />

General<br />

insurance<br />

Credit<br />

cooperatives<br />

Building<br />

societies<br />

Stock and<br />

insurance<br />

brokers<br />

Central<br />

borrowing<br />

authorities<br />

Trading<br />

banks<br />

Savings<br />

banks<br />

Stock<br />

exchange<br />

Central<br />

bank<br />

Banks<br />

Stock and<br />

future<br />

exchanges<br />

Institutions which were in<br />

existence in 1901<br />

Institutions which were in<br />

existence in 2000<br />

Institutions in existence in both 1901 and 2000<br />

where the 1901 institution was relatively more<br />

important than in its 2000 counterpart<br />

Institutions in existence in both 1901 and 2000<br />

where the 2000 institution is relatively more<br />

important than in its 1901 counterpart

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