Australian shares gave up 3.3 per cent at the opening bell Thursday in response to the plunge on Wall Street, reported dpa.
The ASX 200 lost 158 points, or 3.3 per cent, to 4,563.
Treasurer Wayne Swan said the "excessive provision of credit" needed to be addressed.
"I think one of the lessons from what's occurred internationally is that may have been the case," Swan said. "But in this country, our banking sector is well regulated, and we have not suffered from the sort of lending standards you've seen in the United States."