The forthcoming financial system inquiry will examine competition in the insurance sector and cyber risk.

Chairman David Murray says his committee is interested in funding of the economy and the balance between stability, competition and efficiency objectives in the financial system.

“The committee will need to examine the state of competition in banking, payments, insurance, funds management and financial markets, and whether it drives or impedes efficiency, both administrative and allocative, in the financial system,” he told a Committee for Economic Development of Australia lunch on Friday.

The impact of regulation on competition will be a key issue for the inquiry.

Mr Murray says recent technological developments have had a profound effect on the financial system and brought new risks.

“One such risk is cyber security, which the committee would also like to consider.”