Thanks to the rise in the superannuation guarantee level to 12 per cent, by 2030 superannuation assets are likely to exceed those of the banking system.Industry Super Australia expects superannuation assets to rise to more than A$7 trillion by 2030, up from $1.75 trillion at September 2013. ISA made the projection in the first part of its submission to the Financial System Inquiry, but did not project bank asset growth over the next 16 years.The industry superannuation lobby argued that "the growth of superannuation has been an eddy against a general tide of increasing system-wide asset share by the banks," and thus a trend that might support financial stability.The submission rehearsed some basic facts on the dominance of banks within the Australian financial sector, which has "intensified, with the proportion of assets held by banks increasing from 35 per cent to 57 per cent.""At the same time, the proportion of bank assets controlled by the Big Four has increased: between 2002 and 2007 the Big Four lost market share of ADI assets from 70 per cent down to 63 per cent, but since the beginning of the global financial crisis have regained this ground and substantially more, reaching more than 79 per cent market share in 2013."The ISA argued "superannuation institutions also have reduced exposure to the housing market and have much lower credit and market risks than those associated with other types of financial institutions."Since 1990, superannuation is the only sector of the financial system to have grown outside of the Big Four banks, increasing from 11 per cent of assets to 23 per cent of assets. In combination with life insurance, assets have grown from 22 per cent to 27 per cent of system assets."Superannuation, the ISA said, "through a broader asset allocation, including to overseas asset classes, adds diversification and stability to the Australian financial system."A significant proportion of the assets held in large APRA-regulated funds [including industry funds] are held in default or flagship 'pre-mixed' multi-asset class investment options. These investment options are based on a strategic asset allocation intended to provide strong risk-adjusted returns over the long term."The emergence and growth of universal superannuation profoundly improves the Australian financial system."