Implementation of the G20-driven round of global banking reforms "will enhance the stability of the Australian banking system and reinforce Australia's already robust financial regulatory environment" Ken Henry told the Australian Banking and Finance conference yesterday."In an environment where the Australian banking sector remains heavily reliant on funding from offshore markets, the benefits of implementing the G20 reforms are very likely to outweigh any of their costs," he said.Henry said that "even in this more stable environment, the banking system will face a challenge in rolling over 'on cost competitive terms' around A$130 billion in guaranteed debt in the period 2011 to 2014. Guy Debelle, assistant governor for financial markets at the Reserve Bank of Australia, told the conference that "financial inflows in the form of offshore debt raisings by Australian financial institutions have declined. "In the first three-quarters of 2010, the net inflow of foreign funding to banks was only one per cent of GDP. "All of this occurred in the first quarter of the year, with the net amount of offshore funding by the banking sector amounting to zero in the two most recent quarters."Debelle noted that "at the same time, the current account deficit has fallen to around two and a half per cent of GDP."Henry told the conference that the Government's policy measures on banking, announced at the weekend, that would allow banks, credit unions and building societies to issue covered bonds "should assist in this funding task, supporting the robustness of the banking sector over the medium- to long-term."