Govt to reconsider Asian bank decision

A decision by Britain and New Zealand to join a China-led development bank has encouraged a rethink by Australia.

The $57 billion Asian Infrastructure Investment Bank is being promoted by China as a way of financing regional development.

Britain this week joined discussions with other founding members to set out the bank's governance and accountability policies.

Australia, the US, Japan and Korea have declined to support the bank, citing concerns about its governance.

Treasurer Joe Hockey told reporters in Sydney on Friday the government is reconsidering its position in the light of UK and NZ support.

"Quite obviously China has improved the governance structure it is proposing for the Asian Infrastructure Investment Bank," Mr Hockey said.

"So much so that New Zealand has now signed the MOU (memorandum of understanding), as has the UK.

"This is something that will obviously be taken into account by the government over the next few weeks as we continue our dialogue with those people behind the bank."