The Trans-Tasman Council on Banking Supervision (TTBC) endorsed a 2027 workplan covering systemic cyber risks and crisis management arrangements between Australia and New Zealand at its meeting in Sydney. Members also agreed to continue examining risks arising from financial institutions’ increasing reliance on common third-party service providers. Disruption at a shared provider could affect multiple institutions across both countries, underscoring the importance of information sharing and supervisory cooperation. Members will explore opportunities to coordinate policy and regulatory approaches to these risks where appropriate.
The review of progress during 2026 included a joint stress testing exercise indicating that both banking systems would remain resilient through a severe downturn. Banks continued providing credit throughout the simulated stress period despite substantial losses and pressure on capital and liquidity. Continuing the regulatory alignment priorities agreed earlier in 2026, members found broad alignment in major prudential policy settings for non-financial risk. Resolution planning cooperation also covered New Zealand’s capital framework and loss-absorbing capacity instruments, including their interaction with Australian capital requirements. Discussions on cross-border payments addressed ongoing efforts to improve service speed, cost, transparency and accessibility.