Australia's Council of Financial Regulators published its quarterly statement outlining outcomes from its 1 September meeting, including agreement to coordinate agencies’ next steps after the Economic Reform Roundtable and to work with the Government on implementing recommendations from the CFR Review into Small and Medium-sized Banks to better support competition. The Council also reviewed housing-related financial stability risks and, amid declining interest rates, noted the Reserve Bank of Australia’s support for the Australian Prudential Regulation Authority’s decision to keep macroprudential policy settings unchanged. The Australian Competition and Consumer Commission joined the meeting for discussions on Roundtable sessions and the small and medium banks review, and members were updated on actions CFR agencies will take in response. The Council assessed elevated global uncertainty and ongoing risks from fragmentation in trade, very high global asset prices and leveraged investment strategies, while noting strong domestic resilience supported by bank capital and liquidity and borrower resilience despite budget pressures. It also agreed the operational and cyber resilience environment has deteriorated, with rising cyber threat activity, reinforcing priorities on crisis preparedness for geopolitical, operational and liquidity risks. On macroprudential readiness, APRA is engaging regulated entities on implementation aspects of a range of tools, including the serviceability buffer, limits on new high debt-to-income lending, and limits on new investor or interest-only loans. Climate and sustainability work coordinated through the CFR Climate Working Group was reviewed as aligned with the Government’s Sustainable Finance Roadmap, alongside progress on APRA’s Insurance Climate Vulnerability Assessment and an emphasis on avoiding undue regulatory burden. Other discussions covered preparations for the International Monetary Fund’s Financial Sector Assessment Program and wholesale cash distribution issues.
Council of Financial Regulators 2025-09-02
Australia's Council of Financial Regulators coordinates competition reform follow-up and supports APRA holding macroprudential settings steady
Australia's Council of Financial Regulators released its quarterly statement from the 1 September meeting, focusing on post-Economic Reform Roundtable steps and implementing recommendations from the CFR Review into Small and Medium-sized Banks to enhance competition. The Council also addressed housing-related financial stability risks, global uncertainties, and cyber resilience, while aligning climate and sustainability efforts with the Government’s Sustainable Finance Roadmap.