Australia's financial sector was more resilient than many other financial centres coming out of the global financial crisis, according to Austrade's 2009 Financial Services Benchmark Report.
During 2008/09 the finance and insurance sector contributed 8.1 per cent to the real gross value added. The sector also remained well capitalised with total assets for Australian financial institutions exceeding $4.4 trillion, which is equivalent to four times the gross domestic product.
"This year's benchmark report shows Australia's financial sector fared better than most other major financial centres. The sector remains strong, continuing to develop as a regional and global centre with Australian-based institutions seeking global mandates," Austrade national manager financial services Gary Johnston said.
Australia's finance and insurance sector achieved an annual growth rate of 4.8 per cent a year between 1999 and 2009.
"This is well above the combined average for all industries (3.3 per cent) and reflects the strength of Australia's service-based economy," the report said.
Investment funds - which include life offices, superannuation and other managed funds - accounted for 26.4 per cent of total financial sector assets at March 2009. This was up fourfold since 1994 and totalled $1.2 trillion.
Superannuation funds dominated Australia's investment management industry with a market share of almost 60 per cent.
Since March 1994, superannuation funds under management have increased 12.7 per cent to more than $700 billion and Australia now has the fourth-largest pension fund market in the world.
Johnston said Australia's leading financial institutions are also increasingly looking to extend their regional and global reach.
"Our banking and insurance sectors are actively looking for opportunities, particularly in emerging markets, while the funds management sector is looking to position Australia as a product manufacturing hub for the region," he said.
